MARAC acquires the GMAC NZ motor vehicle book

MARAC acquires the GMAC NZ motor vehicle book

Pyne Gould Corporation Limited subsidiary, MARAC Finance Limited (MARAC), has today announced the purchase of GMAC New Zealand Limited’s (GMAC NZ) retail motor vehicle financing book from GMAC NZ and Cari New Zealand.

MARAC’s purchase includes the secured loan receivables, finance leases and operating leases of GMAC NZ, which announced in 2008 that it would cease retail finance business and transition out of wholesale business.

The purchase price is approximately $70 million and will be paid in cash. MARAC will assume the rewards and risks of ownership of the financing book from 31 May 2010, subject to completion occurring. Completion is subject to the conditions in Appendix 1 and is currently expected to occur on 30 July 2010.

MARAC’s Managing Director Jeff Greenslade stated: “We’re pleased to have made this purchase. It is a clear fit with our strategic direction, our proposed merger with Canterbury Building Society and Southern Cross Building Society and our banking aspirations. The GMAC customer base will enhance access to our target market of heartland New Zealanders – small and medium-sized businesses and New Zealand families – and provide us with the opportunity to present them with finance, investment and insurance solutions.”

The General Manager of MARAC’s personal finance business, Chris Flood, said the purchase would significantly expand MARAC’s presence in motor vehicle financing, which is one of the company’s core business areas.

“It further enhances MARAC’s leading position in this market,” Mr Flood said. “It also highlights our commitment to this sector, and provides reassurance to GMAC’s motor vehicle finance customers and dealers.

“We are very pleased to welcome the GMAC customers, and the motor vehicle dealers through which their finance was arranged, into our business.”

ENDS

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