NZF and Liberty in bid for Mike Pero Mortgages

Mortgage broking and finance company New Zealand Finance Holdings (NZF) and Australian lender Liberty Financial have joined forces to try to buy the 5.4 per cent of Mike Pero Mortgages (MPM) they do not already own.

Between them NZF and Liberty hold or control 94.6 per cent of the shares in MPM. They have incorporated a company called MPMH Ltd, of which they will each own half, to make a takeover for all the equity securities in MPM.

They are offering $1.10 per share, an 8c to 10c premium to the price the MPM shares have recently been trading at, NZF said today. The offer values MPM at $25.5 million.

Shares in the company closed at $1 last Thursday, and were up 7c around lunchtime today to $1.07.

NZF reached 74.7 per cent ownership of MPM in March after a $1.05 takeover offer, having been building its stake since last November when it bought a 54 per cent holding in MPM from Gould Holdings for 82c per share.

Liberty nabbed its initial 10.1 per cent blocking stake after offering $1.10 a share in February. It later increased that to 19.9 per cent through a stand in the market offering $1.07 a share.

Along with the joint venture, NZF and Liberty today entered a business co-operation agreement which would see MPM establish a securitisation structure, NZF said.

That would lead to "Mike Pero" branded mortgages and potentially other "Mike Pero" branded financial products to be marketed through the MPM broker network.

A trading halt placed on NZF shares today by the NZ stock exchange was lifted around 12.15pm following the joint venture announcement.

NZF shares closed at $1.21 on Friday.

- NZPA