NZF to exit Mike Pero Mortgages partnership with Liberty

BUSINESSDESK: NZF Group, the financial services firm at loggerheads with the receivers of its failed lending unit, has agreed to exit its Mike Pero Mortgages joint venture with Australia's Liberty Financial for a yet-to-be-determined price.

The Auckland-based firm has agreed to sell its 50% stake in MPMH, which owns the Mike Pero Mortgages business and half of Mike Pero Real Estate, to Liberty and will get an independent valuation to set the sale price, it says.

The sale might need shareholder approval depending on the price and will be the only condition once the valuation is set.

The partners are involved in a High Court dispute over the venture, after Liberty filed papers alleging NZF Group was in breach of the agreed deal.

NZF Group is also in a battle with KordaMentha, the receivers for NZF Money, which is seeking to claw back funds for investors owed some $16.4 million in the failed finance company.

The firm is subject to an investigation by the Serious Fraud Office relating to transactions dating back to 2006.

The shares last traded in May at 0.3 cent, valuing the firm at just $330,000.