Published 18 December 2005
The committee of independent directors at Mike Pero Mortgages Ltd has recommended shareholders don’t accept the 82c/share offer from NZ Finance Holdings Ltd, but neither company’s website has any information about the recommendation.
Pero said the independent directors’ letter, annex to it, target company statement & independent advisor’s report should be sent to shareholders on Monday 19 December.
Despite the recommendation, NZ Finance already has control, through acquisition of major shareholder George Gould’s 54% at the 82c offer price.
Independent advisor Crighton Anderson Corporate Finance Ltd (Tim Crighton & Greg Anderson, Christchurch) assessed Pero’s fair value at 96c-$1.09/share and concluded the 82c offer wasn’t fair.
Pero has added strength to the recommendation by updating its 2006 forecast, from a $1.6 million after-tax surplus to $1.9 million.
Mike Pero himself is on the committee of independent directors, as a minor unattached shareholder. The committee is headed by Humphry Rolleston with Abigail Foote as its third member.
11 December 2005: Pero bid unconditional
26 November 2005: Pero takeover bid 85% geared
19 November 2005: NZ Finance Holdings gets 54% start towards Pero takeover