NZF to launch new Mike Pero bid

New Zealand Finance Holdings (NZF) said today it intends to launch another takeover offer for Mike Pero Mortgages, despite picking up just 1 per cent through an earlier bid that ended this month.

The news saw Mike Pero shares spike 5 per cent, or 5c, to 98c, a fresh year high. That eclipsed an earlier high of 95c touched on Wednesday as speculation about a new bid circulated.

NZF triggered the initial offer when it secured a 54 per cent stake in the mortgage broker from Gould Holdings in November.

The 82c per share offer closed on January 13, having lured the acceptance of just 1 per cent of minority shareholders.

An independent valuation by advisers Crighton Anderson Corporate Finance, issued at the time of the first bid, put the shares in a range of 96c to $1.09.

Today's statement from NZF was vague, simply saying that it planned to launch a full takeover offer "in due course".

Shares in Mike Pero were issued at $1 in May 2004, but dropped to a low of 55c last April as banks stopped paying commissions on Mike Pero-brokered mortgages.

Mike Pero expects to post a net profit of $1.9 million for the 2006 financial year, up from the $1.6 million posted this year.

- NZPA