tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Wednesday, June 26th, 9:47AM

Investments

rss
Latest Headlines

F&P to keep finance company

UPDATED: Fisher & Paykel Appliances has failed to find a buyer for its finance company business and plans to hold onto it for now.

Thursday, March 27th 2008, 4:17PM 1 Comment
Last year the company announced it was looking for buyers for what is the largest consumer finance business in the country.

After assessing interest from bidders who conducted a due diligence, it said it would retain the business.

"We said at the beginning of this process, that FPA would only divest the finance business if value exceeded our internal valuation," managing director John Bongard said.

Reports suggest that up to 10 parties, including other finance companies and private equity players, had looked at the business and that it was expected to fetch between $170 million and $200 million.

"This disciplined approach has not resulted in a sale and is a decision that we are very comfortable with," Bongard said in a statement yesterday.

He said the business had exciting growth prospects and F&P will continue the existing business plan to grow the Q Card and Farmers Card products.

He said the business is currently performing well and was strongly positioned to take advantage of the opportunities resulting from the reducing number of participants in the finance company sector.

Goldman Sachs says the "decision will be a disappointment to the market as it postpones a potential positive catalyst for the stock."

"In addition we believe that in the current market conditions it is unsurprising that bids have failed to exceed FPA's internal expectation. We would not rule out a potential disposal in the future, given that the Finance division contributes 24% of group earnings and is essentially non-core.

« BNZ lowers rate on share offerS&P paints picture of debenture market »

Special Offers

Comments from our readers

On 5 February 2011 at 7:13 pm adalat said:
Good article. Thank you.
http://ericclaptonsiteru.blog.com/2011/02/04/full-information-adalat/
Commenting is closed

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
Rabobank 5.25  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
  • Observations from the FAP monitoring insights report
    “JP: my point exactly, no one knows what they don’t know, but there are some solutions. I’m currently working with...”
    24 minutes ago by Steve Wright
  • Observations from the FAP monitoring insights report
    “The not-so-small challenge I have here is the idea that we can address CPD in areas we don't know about. The whole point...”
    15 hours ago by JPHale
  • Code Committee proposes changes
    “Good comment Paul. Particularly like your referencing David Greenslade's comment made last year about his company Strategi...”
    18 hours ago by Amused
  • Code Committee proposes changes
    “@thanks paul flood. we have to be mindful of conflict of interests. there are advisers who were told by a particular provider...”
    18 hours ago by w k
  • Code Committee proposes changes
    “On a very quick first read, the following proposal strikes me as good news for advisers and adviser businesses: 1. Recognise...”
    22 hours ago by Paul Flood
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com