1 Comment 1 Commentby Paul McBeth
Allan Hawkins is set to swoop on Cynotech Holdings Ltd., the small finance company he chairs, after his private investment company announced plans for a takeover bid. The shares surged almost 32% to 14.5 cents.
Hawkins, the former boss of Equiticorp who was jailed in the 1990s for his role in the so-called ‘H-fee', said in a letter to shareholders Cynotech Securities Group. intends to make a full takeover offer, with notice expected to be on or around December 10. Cynotech grew out of Rocom Wireless, a satellite phone company, and Hawkins got involved in 2004 when he helped capitalise the company's newly established finance unit.
He declined to comment further, saying more information will be revealed once the takeover notice is lodged.
Cynotech Holdings boosted its profit to $1.3 million in the six months ended June 30, from $1.2 million a year earlier, and Hawkins was highly critical of finance companies that didn't make adequate provisions for bad loans. The company, which makes about two-thirds of its revenue from lending on cars, has grown by taking on the loans books from National Finance and Western Bay Finance.
The Commerce Commission is prosecuting the company over the charging of interest and fees on its Budget Loans unit.
Paul is a staff writer for Good Returns based in Wellington.
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