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

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news