Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.Launch Radio player
Troubled financial services firm NZF Group says its half-stake in MPMH is worth $2.76 million, according to an independent valuation.
MPMH, NZF's joint venture with Australian company Liberty Financial, is the parent company of Mike Pero Mortgages and 50% owner of Mike Pero Real Estate.
In a statement to the NZX, NZF says its board is yet to review Simmons Corporate Finance's valuation and the proposed sale is subject to shareholder approval.
A notice of meeting will be lodged shortly.
As part of the sale, NZF is expected to be repaid a shareholder loan of $397,000.
NZF also faced High Court action to force it to sell its MPMH stake, as Liberty claimed a contractual default.
However, NZF agreed to sell in September.
NZF Group's assets were frozen in a separate legal battle with the receivers of its failed lending subsidiary, NZF Money, over the contentious 80% sale of NZF Group's home loans division to Australian company Resimac.
The court relaxed the freezing order in August.
NZF Money went into receivership in July 2011 owing $16.4 million. The receivers, KordaMentha, estimate the top return to debenture holders to be 27%.
NZF Group is being investigated by the Serious Fraud Office and Financial Markets Authority relating to transactions dating back to 2006.
NZF Group shares (NZX: NZF) last traded at 0.3 cents, valuing the firm at $330,000.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Court says building a business isn't part of running a business
- Old council HQ in line for a multi-million dollar conversion
- Pacific Edge rights offer mopped up by institutions, says underwriter
- Greece's near 200 years of financial failure, political instability
- Editor’s Insight: The OECD's recipe for productivity growth