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.


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7113 0.0000 0.00%
AUD 0.9508 0.0000 0.00%
EUR 0.6400 0.0000 0.00%
GBP 0.5202 0.0000 0.00%
HKD 5.5327 0.0000 0.00%
JPY 72.5690 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1322.4 60.100 2016-06-24T00:
Oil Brent 49.0 0.120 2016-06-24T00:
Oil Nymex 47.6 -2.520 2016-06-24T00:
Silver Index 17.8 0.440 2016-06-24T00:

Indices

Symbol Open High Last %
NZX 50 6821.4 6853.1 6821.4 -2.25%
NASDAQ 4715.8 4798.2 4910.0 -4.12%
DAX 9237.6 9720.1 10257.0 -6.82%
DJI 17946.6 17946.6 18011.1 -3.39%
FTSE 6338.1 6338.6 6338.1 -3.15%
HKSE 20483.5 21034.2 20868.3 -2.92%
NI225 16333.9 16389.2 16238.4 -7.92%
ASX 5280.7 5325.4 5280.7 -3.17%