George Kerr's Torchlight Fund has has confirmed it will increase its investment in South Canterbury Finance by $15.5 million.This, added to the $22 million injection already announced, takes Torchlight's investment in South Canterbury's parent company Sou
George Kerr’s Torchlight Fund has has confirmed it will increase its investment in South Canterbury Finance by $15.5 million.
This, added to the $22 million injection already announced, takes Torchlight’s investment in South Canterbury’s parent company Southbury to $37.5 million.
South Canterbury Finance chairman Allan Hubbard says the additional investment endorses the repositioning of the business over the last six months.
“Strategically, South Canterbury Finance is one of only a handful of finance companies with the ability to provide funds for business growth and development beyond the traditional banking sector,” Mr Hubbard said.
Torchlight Fund chairman George Kerr said Torchlight was committed to helping South Canterbury execute its strategy of moving towards three distinct business groups - traditional finance, private equity, and real estate and asset management.
South Canterbury ceo Sandy Maier welcomed the Torchlight top up saying it would consolidate South Canterbury’s cash position and provides further flexibility for the company.
Subject to approvals, the $15.5 million will be invested on May 31.
South Canterbury will guarantee the redemption by Southbury of the securities issued to Torchlight and grant a prior ranking charge over its assets in support of the guarantee. Southbury will also indemnify South Canterbury for any payments required under the guarantee.
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