Dorchester Pacific sells Direct Broking
May 12, 2006
Dorchester Pacific sells Direct Broking to ANZ National Bank
Dorchester Pacific has agreed to sell its subsidiary Direct Broking to the ANZ National Bank for $5.125 million.
The sale which is conditional on NZX approval and other administrative details is expected to be settled at the end of May.
No jobs are affected at Direct Broking.
Dorchester Pacific interim Chief Executive Mark Simpson says the sale fits with Dorchester’s policy of concentrating on those core activities which provide maximum returns for shareholders.
“We have taken Direct Broking as far as we can. It’s a fantastic business but it now needs an organisation the size of ANZ National Bank which has the scale and infrastructure to develop it further.”
“We purchased Direct Broking in 2000, amalgamated the client book with another broker, added value to the business and it’s mature for us now. ANZ National can take it to the next level,” Mr Simpson says.
Earlier this week, Dorchester Pacific chairman Barry Graham announced the appointment of Andrew Walker as the company’s new Chief Executive Officer from May 30.
“Dorchester Pacific is making some important changes at the moment and Andrew’s appointment and the sale of Direct Broking put the company in good shape to move forward,” he said.
“While some things are obviously changing, Dorchester will retain its conservative approach and its focus on creating value for its shareholders.” Mr Graham said.
Dorchester Pacific will release its 2005-06 annual result later this month.