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Christchurch non-bank mortgage lender propertyfinance group has extended its on-market stand for shares in local rival Canterbury Building Society after securing less than a third of the stake it was aiming for.
The $5-a-share offer for CBS's NZAX listed stock was due to close yesterday, but PFG extended it until Wednesday.
PFG, also listed on the NZAX, hopes to snag 19.9 per cent of CBS and negotiate a merger. But by close of trade yesterday it had just 403,065 shares, or 6.1 per cent.
Nevertheless, PFG chairman Barney Sundstrum said the company was very pleased with progress.
"CBS has a very wide shareholding base and consequently many shareholders are still only receiving noticeof the stand or seeking advice on their shareholdings," Sundstrum said.
PFG founder and chief executive Darryl Queen said his company would continue to offer $5 a share for CBS shares after the stand closed next week if the 19.9 per cent stake was not achieved.
However, CBS shareholders who sold their stock on market after the offer's close would not benefit from the stand's escalation clause, which entitles sellers to receive additional money for shares they had already sold if PFG ups its offer.
Queen said he and Sundstrum had "a very good meeting" with CBS chairman Graham Kennedy and director Don Church during which they gave assurances they were not seeking to take over the building society.
Both companies specialise in non-bank first mortgage lending.
PFG has total assets of more than $400 million and CBS about $345 million.
