Published 14 February 2006
NZ Finance Holdings Ltd reduced its takeover offer for Mike Pero Mortgages today to take the 3c Pero dividend into account, even though:
the dividend payout was an entirely predictable event and will be made before the bid’s closing date, and
Australian company Liberty Financial Ltd bought 10.1% of Pero on 3 February at $1.10/share â€“ 28c more than the original NZ Finance offer, 5c more than NZ Finance’s announced higher offer & 8c more than the offer being posted out.
The NZ Finance bid closes on Thursday 16 March. After buying the 54% of major shareholder George Gould at 82c in November, NZ Finance added only 1% more with its original offer, which independent advisor Crighton Anderson Corporate Finance Ltd (Tim Crighton & Greg Anderson, Christchurch) assessed in December as being well below the fair value range of 96c-$1.09.
Staples Rodway Corporate Finance Ltd prepared a report for NZ Finance comparing terms & conditions offered for voting & non-voting securities. It wasn’t on the merits of the offer. A separate independent advisor’s report on the offer’s merits commissioned by Pero’s independent directors still has to be released.
Staples Rodway came up with a value range for the Pero options of 3.8-8.5c, for which NZ Finance is offering 4c, and found the offer was fair.
Last week, Pero announced a half-year net profit of $952,231, up 18.7%, on revenue up 44% to $9.2 million & ebit up 23.9% to $1.53 million.
5 February 2006: Liberty gets 10.1% of Pero
1 February 2006: NZ Finance raises Pero bid by 28%
29 January 2006: NZ Finance promises new Pero offer “in due course”
12 January: NZ Finance bid for Pero closes with 55% stake
18 December 2005: Advisor says 82c Pero bid way too light
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
Attribution: Company statement, story written by Bob Dey for this website.