Little guys down south get bigger
One of New Zealand's smaller financial services firms has spent $61 million to acquire two other firms.
Monday, January 22nd 2001, 11:39PM
Pyne Gould Corporation (PGC) has moved further into the financial services industry with the purchase of Marac Finance and Marac Securities for $41 million, and most of Dunedin-based Allied Finance for $20 million.
Marac is well-known in the financial planning industry through its previous name UPC Securities and its involvement in putting together property syndications for nationwide advisory chain Money Managers.
Frontline Finance was launched a few years ago with a portfolio of loans from Motor Trade Finance.
With previously acquired Allied Finance, PGG now has three finance companies straddling the key markets of vehicle financing, plant and equipment financing and property development financing.
The company has grown its term deposit and debenture business, and plans to expand that area.
PGC managing director Richard Elworthy says the company will be looking to work more closely with financial planners.
Besides these latest acquisitions Christchurch-based PGC also owns funds management firm Perpetual Trust.
Elworthy says before the latest purchases the company was split 50:50 between rural servicing and financial services. Now its business is 70:30 in favour of financial services.
He says by reducing its relative exposure to the cyclical rural sector PGC will have more stable earnings.
He says there's lots of opportunities for PGC to develop its financial services. The latest acquisitions will sit alongside Perpetual.
The group will
Elworthy says PGC didn't wish to buy Frontline's Direct Home Loans mortgage business.
The total assets of the PGC group are $660 million.
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