Dominion Finance to Purchase North South Finance
13th December 2005
Dominion Finance Holdings to Purchase North South Finance Ltd
Dominion Finance Holdings Limited (DFH) has entered into an agreement to purchase 100% of the shares on issue for North South Finance Limited.
Consideration for the purchase will be satisfied by way of a cash payment of $30 million and the balance by issue of new shares in DFH calculated in accordance with an agreed formula. DFH estimates that the issue price for these shares will be in the vicinity of $1.40 per share.
This transaction is conditional upon DFH completing due diligence before 22 December 2005, and the approval of DFH shareholders before the end of January 2006.
Settlement is set down for the 28th February 2006.
North South Finance Ltd was formed in November 1999 with the principal activity being that of a financer undertaking short term finance, bridging loans and general mortgage finance over New Zealand property.
Terry Butler, Chief Executive Officer for DFH said: “This purchase not only provides an opportunity for growth and significantly increases the size of the company, but it will further enhance the solid base DFH has been developing over the past few years.”
“I have stated on a number of occasions the Group will explore opportunities that will provide additional quality to compliment our existing operations. North South Finance is a well run, profitable company and a good fit with our business.”
Following the purchase North South Finance Ltd will continue to operate as a separate entity headed up by its current CEO Darryl Eastgate.
Full details of the transaction will be forwarded to shareholders as soon as possible in the New Year.