FlexiGroup agrees to F&P Finance for $315 mln, subject to OIO, RBNZ approvals

Tuesday 27th October 2015

FlexiGroup, the ASX listed financial services company, has agreed to acquire Fisher & Paykel Finance Holdings from its parent, F&P Appliances Holdings, the home appliances maker owned by China's Haier Group, for $315 million .

The deal is subject to approval from the Overseas Investment Office and the Reserve Bank of New Zealand, F&P Appliances said. FlexiGroup's shares were halted from trading on the ASX pending its announcement on the acquisition and an associated capital raising, it said in a separate statement.

FlexiGroup will pay $250 million cash up front and $65 million as a deferred consideration. F&P Finance was established in 1973, providing credit to consumers buying F&P appliances. Buying the finance company would mark FlexiGroup's second New Zealand acquisition this year after it agreed to buy Spark New Zealand's Telecom Rentals business for $106 million.

FlexiGroup shares last traded at A$2.55 on the ASX and have dropped 28 percent in the past 12 months. The stock is rated a 'buy' based on the consensus of 10 analyst recommendations compiled by Reuters.

Haier effectively rescued F&P Appliances in 2009 when it acquired a 20 percent stake as part of a capital raising that let the company refinance its debt. The local manufacturer got distribution into China as a result of a reciprocal agreement, the ability to further license its technology and toll manufacturing opportunities. The Chinese company took full control in 2012 and F&P Appliances was delisted from the NZX.

F&P Finance contributed about $137 million of revenue to the parent company in 2014, up from $98.6 million in 2013.

BusinessDesk.co.nz

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