What NZF Group's Mike Pero stake is worth
The troubled financial services firm says a proposed sale of its joint venture company is subject to shareholder approval.
Hot Topic
NBR Focus: GMO
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.
NBR Online staff
Fri, 23 Nov 2012
Fri, 23 Nov 2012
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
What NZF Group's Mike Pero stake is worth
25715