Bluestone still looking for finance company buys

Bluestone may have missed out on getting control of Geneva Finance, but it hasn't stopped looking for finance company acquisitions in New Zealand.

Friday, May 2nd 2008, 5:17AM
Group chief executive Peter McGuinness says Bluestone is still interested in the New Zealand market and is talking to various other parties.

He says Bluestone is looking for similar opportunities to Geneva and is in "a number of discussions."

While the company has wound back its lending operations it was still active in the home equity release market, and it had an unnamed backer prepared to help fund any finance company acquisition.

As for making any further advances on Geneva, he indicates that is unlikely, although he does say Bluestone would "welcome the opportunity to chat if the company is interested."

He says the Genevea bid was "always a reasonably speculative discussion," and he isn't surprised debenture holders and noteholders supported the recapitalisation plan when the only alternative was receivership.

"Receivership is always fairly unpalatable," he says.

McGuinness still has some concerns people voting on the proposal had no real independent advice on the offer.

Meanwhile Geneva has written to its investors and confirmed that they can convert additional amounts of debt to equity.

To support the offer it has pointed out that the shares will be listed and traded on the NZAX, and that "converting more (debt) to equity may reduce the term of your repayment schedule as additional conversions will start from the final repayment moving up according to the amount of additional conversion."

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