Timaru businessman tipped to float finance company

Timaru businessman Allan Hubbard is rumoured to be readying his privately-held finance company for a sharemarket listing later this year.

The possible float would likely value the 80-year-old South Canterbury Finance (SCF) company at $200 million, making it one of the richest sharemarket offerings of the second half.

Mr Hubbard, 77, bought out his long term partner in the firm, Humphry Rolleston, in August last year. He is now reportedly planning to sell half of the finance company in a sharemarket float.

The National Business Review today quoted sources close to the deal as saying a partial sale was "well in the pipeline", adding that Mr Hubbard had recruited a small Timaru-based financial services firm to advise on the float.

Mr Hubbard played down the rumours, saying he had not made any decisions and would be in breach of the Securities Act if he said he was floating when he was not.

The low-profile Timaru businessman is one of the South Island's wealthiest men, with an estimated worth of $400 million. He has investments across a range of industries, but lives a humble existence, still driving about in an ancient VW Beetle.

SCF is due to issue its annual result for the year to June in the next few days. Last year the firm reported a full-year net after tax profit of $19.8 million.

In the 2004 year it had a loan book of more than $825m and operating income of $64.78m, making it the country's second biggest consumer finance company after bank-owned UDC.

- NZPA