General Electric buys tech firm with strong links to SCF

General Electric said it would incorporate Commtest into its Bentley Nevada line of 'condition monitoring' products. Photo / Thinkstock

New York-listed General Electric has bought South Island technology firm Commtest, which is part-owned by a subsidiary of South Canterbury Finance, the Timaru-based company that went into receivership last year.

South Canterbury receiver Kerryn Downey of McGrathNicol said he was unable to comment on the sale until a press release was issued.

According to the Companies Office, Hornchurch, a subsidiary of South Canterbury Finance, is a major shareholder of Commtest.

Forresters Nominee Company, which is wholly owned by South Canterbury founder Allan Hubbard and in statutory management, also has a stake in the Christchurch firm.

In a statement released yesterday, GE Energy, a division of General Electric, said it would incorporate Commtest into its Bentley Nevada line of "condition monitoring" products. It did not disclose the purchase price.

Commtest manufactures vibration analysis and monitoring equipment, which detects early signs of an impending machine failure so replacements or repairs can be made before a breakdown occurs, the US company said.

Last week, South Canterbury's receivers sold the company's consumer, business and rural loan books to Japanese investment bank Nomura.

McGrathNicol said the three loan portfolios, with an aggregate book value of about $123 million, comprised the balance of SCF's "good bank" business, following the successful $100 million sale of Face Finance to GE Capital, another division of General Electric.

South Canterbury's failure prompted a $1.6 billion call on the Government's deposit guarantee scheme.

- Staff reporter