Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Turners seeks almost 20% of MTF to cement relationship

Turners seeks almost 20% of MTF to cement relationship


By Jonathan Underhill

Sept. 14 (BusinessDesk) - Turners, the company formerly known as Dorchester Pacific, is offering to lift its holding in Motor Trade Finances to almost 20 percent by buying shares at a premium, a move it says would reflect the business relationship between the two firms.

A cash offer of $1.15 a share will be sent to MTF shareholders on Sept. 17, Turners said. The stock last traded on the ShareMart system on Sept. 1 at 94 cents apiece and there are currently two offers to sell a combined 20,700 shares at that price.

"Turners currently write around 10 percent of new loans originated through MTF with that percentage continuing to increase in recent months," said chief executive Paul Byrnes. “We are making this offer to enable us to increase our shareholding to better reflect our commitment to the MTF model. We expect our book to continue to grow. We would also like to think our expertise in the wider financial services and insurance industries could bring value to the business for the benefit of all shareholders."

The company currently holds 218,452 MTF shares, amounting to almost 1 percent of the stock. It would need support of the target's board to acquire a fifth of the company, because MTF's constitution has restrictions on holdings above 10 percent.

Turners has been on a buying spree since recapitalising in 2010. It agreed to acquire Southern Finance for $5 million in July, adding a South Island vehicle finance loan book, and has added businesses including Levin-based lender Oxford Finance and Greenwich Life Insurance. Last year it acquired Turners Auctions for $82 million in cash, scrip and bonds, and has changed its name to reflect its biggest purchase.

Byrnes said Turners would not allow its holding to reach 20 percent or more and it was "quite relaxed about the final shareholding we finish up with". It didn't plan to raise its offer.

"We believe our offer provides an attractive opportunity for MTF shareholders who wish to sell their ordinary shares, given liquidity for those shares can be limited," he said.

Acquisitions helped Turners double profit in the 12 months ended March 31 to $18.1 million. Its shares last traded at 28 cents, valuing the company at $177 million. They have gained 155 percent in the past five years, outpacing a 76 percent advance in the S&P/NZX 50 Index.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

RNZ: Porirua Most Expensive Region To Rent, According To Trade Me

A rental website shows this town is now New Zealand's most expensive region to rent a house, ahead of Wellington and Auckland cities. More>>

ALSO:


Stats NZ: Nearly 1,000 More Big Businesses Now Than Two Decades Ago – Media Release

There are now 2,690 big businesses in New Zealand employing more than 100 staff – nearly 1,000 or 58 percent more than 20 years ago, Stats NZ said today. Over the 20 years to February 2020, the total number of enterprises in New Zealand increased ... More>>

ALSO:

RNZ: Housing Boom Could Get Worse, Economist Warns

Economists are calling on the Reserve Bank to reinstate lending restrictions, warning the housing market is spiralling out of control. More>>

ALSO:

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:


CERT NZ: Malicious Computer Virus Targeting New Zealanders

CERT NZ, the government agency which supports organisations and individuals affected by cyber security incidents, says a recent surge of increasingly sophisticated malware attacks is affecting everyday New Zealanders as well as large organisations. The ... More>>

ALSO:

Economy: NZ Small Business Recovery Continues In September

Xero, the global small business platform, today released its Small Business Insights (XSBI) for September revealing an uptick in small business jobs and year-on-year revenue growth in New Zealand. Nationwide, the average number of jobs in the small ... More>>

ALSO:


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>