Lombard acquires Tasman Mortgage Group

Lombard acquires Tasman Mortgage Group

The acquisition marks the first step in Lombard Group’s strategy of growing its financial services operations

31 May 2007 – Lombard Group Limited (Lombard Group, NZX: LOM) is pleased to announce it has entered into an agreement to acquire Tasman Mortgage Group, a securitised mortgage arranger and mortgage broking subsidiary of ASX-listed Australasian residential investment company Blue Chip Financial Solutions Limited (ASX: BCF).

Settlement of the transaction will occur as soon as certain third party consents are obtained. The announcement comes a day after Lombard Group posted a net profit after tax for the year to 31 March 2007 of $4.86 million, up from $2.34 million in the previous year.

Lombard Group chief executive Michael Reeves said the acquisition of financial services businesses like Tasman was a natural extension of the company’s business.

“We believe significant synergies and efficiencies can be achieved for Lombard by owning financial services and intermediary businesses like Tasman,” Mr Reeves said.

Since its launch in 2000 Tasman Mortgage Group has arranged mortgage finance for more than 1500 New Zealanders purchasing investment properties and family homes.

Under the terms of the deal Tasman will retain recommended broker status for all of its significant existing clients, including Blue Chip, and strategies will be put in place to grow the business further. The transaction, the details of which is confidential but includes an earn-out component, has been approved by both the Lombard Group and the Blue Chip boards.

ENDS

About Lombard Group
Lombard Group Limited listed on the NZX main board in December 2005 following the takeover of a NZX-listed company. Lombard’s principle business is wholly-owned subsidiary Lombard Finance & Investments Limited, a specialist property, plant and equipment financier. Lombard plans to grow its footprint across the financial services market through organic growth and acquisition as opportunities arise.

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