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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news