Sharechat Logo

Dorchester lifts Turners Auctions stake to 19.85%; no plans to make offer

Monday 10th June 2013

Text too small?

Dorchester Pacific, the financial services firm whose shares have soared 237 percent in the past year, lifted its stake in Turners Auctions to 19.85 percent and said it has no immediate plans to make an offer for the company.

Dorchester is flush with funds after a greater-than-expected conversion of options and share placement this month raising about $21 million. The company has a potential acquisition to expand in financial services in its sights, though it is too soon to give details, chief executive Paul Byrnes told BusinessDesk.

The company agreed to buy an initial 18.2 percent of Turners from interests associated with Milford Asset Management in April and has lifted its stake near the maximum it can hold without making a takeover offer since then by buying shares on market. More than 65 percent of Dorchester's new lending is for motor vehicles and the company believes it could add "considerable value" to Turners in vehicle finance and insurance, it said in April.

"We're comfortable with that level of shareholding as we increase our understanding of the company," Byrnes said. "There's no intention at this stage to move higher."

Dorchester shares were unchanged at 30 cents, valuing the company at about $64 million. Turners rose 0.6 percent to $1.79.

Investors exercised 133.7 million of the 150 million options the company issued as part of a 2010 recapitalisation plan led by the Bakery Business, where some 7,200 investors owed about $84 million agreed to convert their debenture stock for four different types of security to keep the firm afloat.

Business Bakery holds 24.5 percent of Dorchester's expanded capital, while Matthew Harrison, the head of the EC Credit Control that the company acquired last year, will hold 8.5 percent.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Dorchester raises $4.1 million in placement supported by major shareholders
Dorchester investors exercise 134 mln options, major shareholders asked to sell down
Dorchester narrows first-half loss, forecasts FY profit
Dorchester agrees to buy EC Credit for $18.5M in cash, stock and earn-outs
Dorchester rescue plan ups net profit
Dorchester profit boosted by capital reconstruction plan
Dorchester appoints general manager, insurance and lending
Dorchester staves off receivers
Dorchester posts annual loss of $19.1 mill
Dorchester Pacific needs $8 million and investor approval for reconstruction bid