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 0.7268 0.0010 0.14%
AUD 0.9329 -0.0009 -0.10%
EUR 0.6428 0.0006 0.09%
GBP 0.4821 0.0007 0.15%
HKD 5.6343 0.0077 0.14%
JPY 85.3050 0.2540 0.30%

Commods

Commodity Price Change Time
Gold Index 1278.5 26.140 2015-01-30T00:
Oil Brent 54.0 -0.170 2015-01-30T00:
Oil Nymex 48.2 3.580 2015-01-30T00:
Silver Index 17.2 0.435 2015-01-30T00:

Indices

Symbol Open High Last %
NZX 50 5759.8 5766.7 5752.3 -0.14%
NASDAQ 4671.2 4703.8 4683.4 -1.03%
DAX 10801.4 10804.0 10737.9 -0.41%
DJI 17416.8 17419.9 17416.8 -1.45%
FTSE 6810.6 6844.0 6810.6 -0.90%
HKSE 24771.4 24771.4 24595.8 -0.36%
NI225 17536.6 17560.6 17674.4 -0.76%