F&P Appliances considers selling finance unit as potential buyers emerge

Monday 4th May 2015

Fisher & Paykel Appliance Holdings, the Auckland based manufacturer and consumer credit company owned by China's Haier Group, is considering selling its finance operations after being approached by potential buyers.

The company has appointed First NZ Capital to "assess potential options" for the future of its finance arm "in response to recent market interest," and had already fielded several enquiries regarding its long term plans for the business, it said in a statement. The finance business includes the QCard and the Farmers Finance Card.

"Buyer interest in financial institutions is presently very strong," chairman Keith Turner said. "Whilst FPAH is happy to continue to own FPF and support its ongoing development, it is very possible a change in ownership may be a better option."

In April, the company reported it narrowed its full year loss in 2014 to $12.6 million in calendar 2014, from a loss of about $31 million a year earlier, after sales growth across all its markets drove a 46 percent gain in revenue to $1.13 billion. Of that sales, Fisher & Paykel Finance contributed about $137 million of revenue, up from $98.6 million in 2013.

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.

BusinessDesk.co.nz

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