RBNZ approves Wolfstrike's purchase of lender FE investments

Friday 26 May 2017 02:11 PM

RBNZ approves ASX-listed Wolfstrike's purchase of lender FE Investments

By Paul McBeth

May 26 (BusinessDesk) - The Reserve Bank has given the seal of approval to ASX-listed Wolfstrike Rentals Group to buy local financier FE Investments, the last hurdle the firms needed to cross in settling the deal.

Sydney-based Wolfstrike today said it was granted approval yesterday by the RBNZ to go ahead with buying FE Investments in an all-scrip deal, giving the New Zealand firm's owners a controlling stake in the enlarged entity. The deal needed central bank approval because FE Investments is a non-bank deposit taker.

"FEI has grown rapidly over the last few years," FE Investments managing director TK Shim said in a statement. "Being part of the ASX listed company will enable FEI to tap into the Australian markets for capital to support FEI's growth plans where the ASX is regarded as a major bourse on the world stage."

Shareholders of both firms approved the deal in separate meetings earlier this year, and once it's settled, Wolfstrike will consolidate its shares in a 30-to-one basis. The shares last traded at 0.5 of an Australian cent each.

FE Investments had assets totalling $37.2 million as at March 31, 2017, with about 30 percent of its loan book for property development. At the time, it held term deposits totalling $29.5 million, of which about 46 percent was from non-resident investors.

(BusinessDesk)

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