Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Motor Trade Finances rebuffs Heartland approach

Motor Trade Finances rebuffs Heartland approach, mulls meeting

By Paul McBeth

July 21 (BusinessDesk) - Motor Trade Finances, the Dunedin-based auto-finance firm, rejected a takeover offer from Heartland New Zealand earlier this year, and is warning its shareholders to be wary of any communication from the bank.

The finance company, which has a loan book of some $438 million, has been in talks with Heartland for a considerable period over a potential takeover bid, with an indicative offer made in May, which the board declined, MTF said in a statement. One of the reasons for turning down the bid was Heartland's request for information relating to a Commerce Commission prosecution currently under appeal, for which the bank wasn't prepared to enter into confidentiality agreements.

MTF says Heartland has now started engaging with some of its shareholders, and is warning its investors to treat any communications from the bank with caution "given that it is a competitor and potential acquirer of MTF."

Last week the finance company's board received a letter from shareholders with some 8.1 percent of the firm's voting rights seeking a special meeting to publicise information relating to the prosecution, which MTF says is effectively the same information Heartland sought.

MTF plans to meet with the shareholders to discuss what it says are some errors of fact, and will issue a notice of meeting as soon as practicable, it said.

The firm said it is happy to work with Heartland to find a proposal it considers has merit for shareholders.

MTF has $40 million of perpetual preference shares listed on NZX's debt market, which last traded at 68 cents in the dollar.

Earlier this year Heartland spent $87 million in cash and shares for the Seniors Money International home equity release firm.

Its shares fell 1 percent to 95 cents today, and have gained 13 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Insurance: EQC To Double Payout, Scrap Contents Insurance

New Zealand’s Earthquake Commission may double its payout amount, scrap contents insurance and process claims through private insurers under the government’s long-running review of funding and management of the state-run earthquake insurer. More>>

ALSO:

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news