NZF Group (NZF and NZF010)

[Tony Two Gloves]

Enumerate - Yes I have had some business dealings (not as a borrower) with them back when there SP was well over a $1.00. I found them extremely arrogant at the time and then decided to liquidate the majority of my shares which in hindsight was brilliant in realtion to where the SP is now. The only downside was I didn't sell the lot at the time.....

Invessi - It was the receiver who made reference to outdated valuations on loan roll overs, I think I would trust the receiver more than the company denying this. Whilst this is an anonymous forum, I doubt you are just a casual shareholder as the info you provide is not readily avalable to "casual shareholders".

At the end of the day this Resi deal should ensure the survival of the company and I am amazed they got it over the line so well done to NZF on that front. I suppose the devil will be in the detail as to pricing etc and what this will mean to all shareholders. Giving up a majority stake in the only part of your business that is profitable (pero's only made $10K last year) would not be a decision made lightly and would indicate there were no other viable options for survival.

[Xerof]

The Australian model is .....

I know how Savilles model works - I didn't ask for an explanation of that

TTG has largely answered the questions I posed anyway, and I would agree with him - Saville will gouge most of the profits from new business. Resimac criteria are very demanding - thats why they are so successful, and have not had the write-offs suffered by their peers. Time will tell as to whether they can get the required volumes of quality lending from this market.

I echo TTG's comment - good on NZF for getting it this far, but I'm not enthused about a long term future

[invessi]

Resimac to take majority stake in NZF's securitisation operations

NZF Group has at last revealed its long-awaited equity partner is Australian non-bank mortgage lender Resimac.
Tuesday, September 27th 2011, 1:20PM
by Jenny Ruth

Resimac will buy a majority stake in NZF's home loan securitisation operations for an as yet undisclosed sum. In June, NZF resumed originating home loans under its $225 million warehouse facility provided by Westpac.

NZF has been looking for an equity partner since early last year and Resimac has been conducting due diligence for months.

NZF says a number of conditions remain to be satisfied with the major ones being the completion of a shareholders agreement "which will, among other matters, give NZF certain minority protection rights," tax rulings and NZF shareholder approval.

NZF has commissioned corporate advisory firm Campbell Macpherson to prepare an independent report for shareholders.

While the price hasn't been disclosed, NZF says it will constitute a "major transaction" under the NZX listing rules which require shareholder approval for any transaction in excess of 50% of a company's market capitalisation. NZF shares last traded at 3.5 cents, giving it a $3.8 million market capitalisation.

NZF says it expects all conditions will be satisfied on or before November 30 and settlement should take place shortly afterward.

The transaction will help shore up NZF's balance sheet. Its net equity at March 31 was $10.3 million but that was before its finance company, NZF Money, went into receivership on July 22.

Last week, NZF said it would write off its $5.1 million investment in NZF Money and will record a $10.7 million loss from discontinued operations in its accounts for the year ending March 2012.

"NZF is excited with the prospect of having (Resimac's New Zealand arm) as a partner in its home loan business and the significant opportunities this will bring," the company says.

Resimac's parent is one of Australia's most respected non-bank lenders, providing funding via its established and longstanding partners and to date having funding more than A$12 billion (NZ$15.1 million).

Resimac set up its New Zealand office last year and this is its first significant move into the New Zealand market.

Founded in 1985 by the New South Wales state government, Resimac's current 80% shareholder is Ingot Capital Management, a company controlled by Duncan Saville who is one of Infratil's directors. Other shareholders include Westpac, National Australia Bank, Macquarie Bank and Credit Suisse First Boston and it also has standby support from Perpetual Trustee Company.

[minimoke]

Resimac to take majority stake in NZF's securitisation operations

NZF Group has at last revealed its long-awaited equity partner is Australian non-bank mortgage lender Resimac.
Tuesday, September 27th 2011, 1:20PM
by Jenny Ruth

Did you forget your post on 27/9. Just because the news is repeated doesn't necessarily make it any better.

[Tony Two Gloves]

Hehe the NZF spin doctor must be getting Alzheimer’s.......

[Enumerate]

You two are not building any credibility by taking cheap shots.

The post actually contains some useful detail additional to the press release.

[minimoke]

The post actually contains some useful detail additional to the press release.

And those details are??

[Enumerate]

1) Resimac's parent is one of Australia's most respected non-bank lenders, providing funding via its established and longstanding partners and to date having funding more than A$12 billion (NZ$15.1 million).

2) Resimac set up its New Zealand office last year and this is its first significant move into the New Zealand market.

3) Founded in 1985 by the New South Wales state government, Resimac's current 80% shareholder is Ingot Capital Management, a company controlled by Duncan Saville who is one of Infratil's directors.

4) Other shareholders include Westpac, National Australia Bank, Macquarie Bank and Credit Suisse First Boston and it also has standby support from Perpetual Trustee Company.

[minimoke]

1) Resimac's parent is one of Australia's most respected non-bank lenders, providing funding via its established and longstanding partners and to date having funding more than A$12 billion (NZ$15.1 million).

2) Resimac set up its New Zealand office last year and this is its first significant move into the New Zealand market.

3) Founded in 1985 by the New South Wales state government, Resimac's current 80% shareholder is Ingot Capital Management, a company controlled by Duncan Saville who is one of Infratil's directors.

4) Other shareholders include Westpac, National Australia Bank, Macquarie Bank and Credit Suisse First Boston and it also has standby support from Perpetual Trustee Company.

If that detail is interpreted as being beneficial to shareholders then I guess it is useful.

[Enumerate]

If that detail is interpreted as being beneficial to shareholders then I guess it is useful.

Sheesh, Mini ... if it not clear that Resimac is very much a "blue blood" non-bank mortgage lender ... and this is the quality of the new owner of NZF Homeloans ... and this might be of interest to NZF holders ...

Also, it is clear that Westpac has an interest in Resimac ... and are also the current NZF Homeloans wholesale provider ... and this might be of interest to NZF holders ....

Given that Duncan Saville was also one of the NZ government spurned restructurers of SCF ... and that he now has an exposure to the NZ non-bank mortgage market ... and can be expected to be interested in aggressively growing this interest ... and possibly broadening his interests ... and this might be of interest to NZF holders ...

What will be impacts be on the Pero business, with a high quality non-bank mortgage lender actively interested in writing new, high quality, business in NZ ... would this be of interest to NZF holders?

Is it likely that NZF will be liquidating a significant equity position in NZF Homeloans as a result of the transaction? If so, what does the future hold?