What NZF Group's Mike Pero stake is worth

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.

In May, NZF volunteered not to sell its stake in MPMH, narrowly avoiding a High Court hearing.

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

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7283 -0.0003 -0.04%
AUD 0.9348 0.0001 0.01%
EUR 0.6428 0.0002 0.03%
GBP 0.4830 -0.0002 -0.04%
HKD 5.6463 -0.0016 -0.03%
JPY 85.8250 -0.4060 -0.47%

Commods

Commodity Price Change Time
Gold Index 1257.0 -28.890 2015-01-29T00:
Oil Brent 50.1 0.560 2015-01-29T00:
Oil Nymex 44.5 0.000 2015-01-29T00:
Silver Index 16.8 -1.310 2015-01-29T00:

Indices

Symbol Open High Last %
NZX 50 5759.8 5766.7 5759.8 -0.27%
NASDAQ 4635.7 4688.4 4638.0 0.98%
DAX 10666.4 10743.6 10711.0 0.25%
DJI 17195.3 17433.1 17191.4 1.31%
FTSE 6825.9 6825.9 6825.9 -0.22%
HKSE 24771.4 24771.4 24595.8 -0.31%
NI225 17788.7 17808.5 17606.2 0.39%