Marac Finance is to pay about $70 million for GMAC New Zealand's retail motor vehicle financing book, and sees the move helping it reach its "target market of heartland New Zealanders".Pyne Gould Corporation subsidiary Marac is buying the financ
Marac Finance is to pay about $70 million for GMAC New Zealand's retail motor vehicle financing book, and sees the move helping it reach its "target market of heartland New Zealanders".
Pyne Gould Corporation subsidiary Marac is buying the financing book for cash from GMAC NZ and Cari New Zealand, with the conditional deal expected to be completed on July 30, but with Marac to "assume the risks and rewards" of ownership from May 31 providing the deal is completed.
Marac today said the purchase included the secured loan receivables, finance leases and operating leases of GMAC NZ, which announced in 2008 that it would cease retail finance business and transition out of wholesale business.
Marac managing director Jeff Greenslade said the purchase was a clear fit with Marac's strategic direction, its proposed merger with Canterbury Building Society and Southern Cross Building Society and its banking aspirations.
The GMAC customer base would enhance access to Marac's target market of heartland New Zealanders -- small and medium-sized businesses, as well as families.
Chris Flood, general manager of Marac's personal finance business, said the purchase would significantly expand Marac's presence in motor vehicle financing, which was one of the company's core business areas.
