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PGC's Marac unit buys auto financing book for $70m cash

Thursday 1st July 2010

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Pyne Gould's Marac Finance unit agreed to buy GMAC New Zealand's retail motor vehicle financing book for $70 million in cash to expand the reach of one of its core businesses. 

Marac will buy the book from GMAC and Cari New Zealand, a related entity, the company said in a statement to the NZX today.

Marac is in merger talks with Canterbury Building Society and Southern Cross Building Society and managing director Jeff Greenslade said the GMAC purchase will "enhance access to our target market of heartland New Zealanders - small and medium-sized businesses and New Zealand families".

"Settlement of the deal is expected on July 30 and Marac will assume the risks and rewards of owning the book backdated to May 31," it said.

The purchase includes secured loan receivables, finance and operating leases.

GMAC announced in 2008 that it planned to cease retail finance and transition out of its wholesale business.

Shares of Pyne Gould were unchanged yesterday at 38 cents.

They have dropped 19% this year, about twice the decline of the NZX 50 Index.

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