Tuesday 13th December 2005
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Dominion Finance Holdings has entered into an agreement to buy North South Finance for $30 million cash plus shares.
The new Dominon Finance share price will be calculated in accordance with an agreed formula. Dominion estimates that the issue price for these shares will be in the vicinity of $1.40 per share.
This transaction is conditional upon Dominion completing due diligence before December 22, and the approval of Dominion shareholders before the end of January.
North South Finance Ltd was formed in November 1999 with the principal activity being that of a financer undertaking short term finance, bridging loans and general mortgage finance over New Zealand property. "This purchase not only provides an opportunity for growth and significantly increases the size of the company, but it will further enhance the solid base Dominion has been developing over the past few years," Dominion Finance chief executive Terry Butler says.
"I have stated on a number of occasions the group will explore opportunities that will provide additional quality to compliment our existing operations. North South Finance is a well run, profitable company and a good fit with our business."
Following the purchase North South Finance Ltd will continue to operate as a separate entity headed up by its current chief executive Darryl Eastgate.
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