The great $100m debenture battle

By Deborah Hill Cone

Friday 15th November 2002

Former dotcom trailblazer Evan Christian yesterday revealed details of his new venture in the finance industry, Numeria.

The finance sector seems to be "the new black" of the business world, with some entrepreneurs who led the pack in technology now punting that's where big profits lie.

Mr Christian and his former business partner Eric Watson are going to the market this week, each issuing $100 million in secured debenture stock Mr Christian through Numeria and Mr Watson through FAI Finance. Numeria offers 7.62% for two years while FAI offers 8.25%.

But both companies emphasise they are not competing directly as each is offering different products.

Numeria is aiming to offer individually branded finance products for retailers so, for example, a car yard could offer its own loans to customers.

Former Pacific Retail Finance chief executive Kelly Wright was poached by Mr Christian to head up Numeria, which is chaired by former Countrywide Bank managing director David Wolfenden.

Areas such as hire-purchase financing have been seen as poorly served by major banks as New Zealanders' retail spending figures continue to boom.

Numeria would not enter market areas where lending risks were too high or where other finance providers already dominated, Mr Wolfenden said.

Lawyer Alan Harper and accountant Paul Connell will also be on the board of Numeria Finance, which Companies Office records show is wholly owned by Mr Christian through Numeria Corporation.

It is not his first finance venture. I n the 1980s he joined self-styled merchant bank Case Weston Morgan, which later went bust.

Mr Watson already has a finance sector presence with his 50% stake in Elders Finance and its parent company, Hanover Group, which owns FAI Finance, Leasing Solutions and other subsidiaries. He is also the major shareholder in PRG subsidiary Pacific Retail Finance, which funds hire-purchase agreements for consumers as well as providing personal loans, sometimes to low-income customers such as beneficiaries.

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