Wizard and AMS sold for more than $A400 million

The consumer finance arm of General Electric, GE Money, is to pay something over $A400 million ($NZ433.4 million) for Australian Financial Investment Group whose subsidiaries include retailer Wizard Home Loans and wholesale mortgage funder AMS.

Thursday, October 28th 2004, 1:12PM

by Jenny Ruth

The sale price wasn’t officially announced and the actual amount paid will depend on how AFIG performs. AFIG, which has $A18 billion in assets, 230 branches and 80.000 customers, has been on the market for more than a year. It brings GE Money’s Australian and New Zealand assets to about $A38 billion, about $A8 billion of that in New Zealand.

It brings GE to being Australia’s sixth largest home lender behind the four major banks and St George.

The business was previously owned by a consortium including Kerry Packer’s Publishing & Broadcasting (PBL), Deutsche Asset Management and ABN Amro and founder Mark Bouris who is staying on as AFIG’s chairman – GE plans to operate AFIG as a stand-alone business.

The deal delivers PBL, the only listed company in the consortium which paid $A25 million for its stake five years ago, a $A58 million profit.

Bouris founded AFIG in 1996. Broking firm Citigroup Smith Barney estimates AFIG made a $A40million profit in 2003/04.

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Wizard and AMS sold for more than $A400 million

The consumer finance arm of General Electric, GE Money, is to pay something over $A400 million ($NZ433.4 million) for Australian Financial Investment Group whose subsidiaries include retailer Wizard Home Loans and wholesale mortgage funder AMS.

Thursday, October 28th 2004, 1:12PM

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