NZF Group (NZF and NZF010)

[invessi]

Home Loan Assets were valued at $204.2m so holders will no doubt be anticipating an injection of at least $102.11m. I suspect thought that Reismac will have its eye on the corresponding $204.9m in liabilities.

How about I make a punt at 3 x profit or round it to $5m

Edit: NZF have said S129 doesn't apply so not a major transaction - being 75% of assets. NZF are silent one what a majority shareholding actually means so lets assume its a tad less than 100% of Home Loans.

$5M looks about right!

[minimoke]

Not to much enthusiasm for developments. All buy bids now dried up. The 5.5 seller might be wishing he took the 2.5 offer

[invessi]

NZF home loan deal nearly settled
Listed financial services firm NZF Group says it is close to completing a proposed deal to sell a majority stake in its home loan business to an Australian firm.
Friday, October 14th 2011, 3:54PM
by Niko Kloeten

At today's annual meeting in Auckland, the company said the conditions of the deal with Resimac, which has funded more than A$12 billion in the non-bank lending market, would likely be met by the end of next month.

NZF Group has had a torrid time recently including the collapse of its subsidiary NZF Money, which it put into receivership in July after a failed property transaction.

It made a loss of $4.8 million in the 2011 financial year, following a $4.5 million loss in 2010, and the current year's financial statement will include a loss on discontinued operations of $10.7 million from NZF Money.

NZF Group's mortgage securitisation business is the only part of the company that made money last year.

Chief executive Mark Thornton said, "In my last address in September 2010 I said it had been a difficult year and sadly this has been another difficult year in many respects."

He told the small crowd of shareholders at the meeting that the Resimac deal would work out better for them in the long term.

"A small shareholding in a much larger business will in time eclipse the returns provided by a larger shareholding in a small business," he said.

He said there was a "significant opportunity" to expand in the $173 billion residential lending market, of which about $4 billion (2.3%) was provided by non-bank lenders.

"NZF's share is $170 million so we've got 4.3% of 2.3%," he said.

Niko Kloeten can be contacted at niko@goodreturns.co.nz

[minimoke]

I pop away for a few days and what happens? Where have all the buyers/sellers gone. Not one single buy / sell bid at the moment. Even ALF is still able to stir up some interest in the traders.

[invessi]

Latest Headlines
NZF promises new products for brokers
NZF Group has promised new products for advisers as it looks to grow its share of the non-bank lending sector in New Zealand.
Thursday, October 27th 2011, 7:00AM
by Niko Kloeten

The group has had a tough couple of years and its subsidiary NZF Money was recently put into receivership, forcing NZF Group to include a loss on discontinued operations of $10.7 million for the current financial year.

However, its deal to sell a majority stake in its home loan business to Australian non-bank lender Resimac is nearly complete, and NZF Group chief executive Mark Thornton said the deal would mean good things for advisers who work with NZF.

He said NZF would look at producing new products for advisers after the deal went through.

"We want to deal with brokers on a volume basis – it's the 80/20 rule," he told Good Returns.

"However, we build such business by dealing with all brokers and they need a good range of products."

These products would include LMI (lenders mortgage insurance) covered mortgages and non LMI-covered mortgages, he said.

Thornton said the products would be mostly targeted at mortgage brokers, particularly in the major population centres.

He also said Resimac would bring valuable experience from dealing with its large force of advisers across the Tasman, where it has funded more than A$12 billion of mortgages.

Despite the slow housing market, Thornton was confident of growing NZF's share of the mortgage market whichever way house prices went.

"The fundamentals are not going to get any worse, and if it did we have such a small portion of the market we can almost disregard the trend.

"And in such a market the banks cannot lend as quickly as a non-bank lender."

Niko Kloeten can be contacted at niko@goodreturns.co.nz

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n/a n/a n/a n/a n/a
AMP Home Loans
6.24 5.95 6.30 6.70 7.60
AMP Home Loans $200k +
6.14 5.85 6.20 6.60 7.50
ANZ 5.74 5.95 6.49 6.99 7.70
ASB Bank
5.75 5.90 6.30 6.70 7.40
BankDirect
5.75 5.90 6.30 6.70 7.40
BNZ - Classic
n/a 5.95 n/a n/a n/a
BNZ - GlobalPlus
5.99 6.35 6.45 6.99 7.75
BNZ - Mortgage One
6.40 n/a n/a n/a n/a
BNZ - Rapid Repay
5.99 n/a n/a n/a n/a
BNZ - TotalMoney
5.59 n/a n/a n/a n/a
BNZ- Std, FlyBuys
5.99 6.35 6.45 6.99 7.75
CBS Canterbury
5.95 6.25 6.50 7.10 7.80
Credit Union Auckland
6.20 n/a n/a n/a n/a
Credit Union Baywide
5.85 6.15 6.65 6.95 n/a
Credit Union North
5.80 5.95 6.45 6.95 n/a
Credit Union South
5.75 n/a n/a n/a n/a
eMortgage 6.04 6.15 6.69 7.19 7.90
Fidelity Life
6.00 6.35 6.90 n/a n/a
Finance Direct
6.10 6.45 6.69 7.10 7.70
First Credit Union
6.45 n/a n/a n/a n/a
General Finance
5.95 6.25 6.50 7.10 7.90
HBS Bank
5.65 5.80 6.45 6.70 7.60
Heretaunga Building Society
5.75 5.95 6.45 n/a n/a
Housing NZ Corp
5.75 5.90 6.30 6.70 7.40
HSBC Premier 5.99 5.65 6.10 6.50 7.35
Kiwibank 5.65 5.80 6.30 6.70 7.60
Kiwibank - Capped
5.65 6.25 n/a n/a n/a
Kiwibank - Offset
5.50 n/a n/a n/a n/a
Liberty
5.75 n/a n/a n/a n/a
Napier Building Society
5.80 6.00 6.70 n/a n/a
National Bank
5.74 5.95 6.49 6.99 7.70
Nelson Building Society
6.45 6.50 6.75 n/a n/a
NZ Home Loans
5.85 5.90 6.30 6.70 7.40
NZF (LVR >80%) 6.10 6.15 7.15 7.60 n/a
NZF Standard 70
5.85 5.95 6.30 7.20 n/a
NZF Standard 80
5.85 5.95 6.90 7.35 n/a
Perpetual Trust
7.70 n/a n/a n/a n/a
PSIS 5.70 5.80 6.30 6.80 n/a
Public Trust
5.60 5.75 6.20 6.70 7.45
SBS Bank
5.65 5.80 6.45 6.70 7.60
SBS Special
n/a n/a 6.25 n/a n/a
Silver Fern
5.95 6.10 6.55 7.05 7.80
Southern Cross 5.95 6.25 6.50 7.10 n/a
Sovereign 5.85 5.90 6.30 6.70 7.40
TSB Bank
5.79 5.75 5.95 6.70 7.75
TSB Bank Special
n/a n/a 5.95 n/a n/a
Wairarapa Building Society
6.20 6.70 6.95 n/a n/a
Westpac 6.24 5.95 6.30 6.70 7.60
Westpac - Capped rates n/a 6.75 n/a n/a n/a
Westpac - Choices Everyday 5.60 n/a n/a n/a n/a
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for AMP Home Loans AMP Home Loans $200k + ANZ ANZ - Simple Variable ANZ - Special LVR 80% max ASB Bank AXA BankDirect BNZ BNZ - Classic (T&C apply) BNZ - GlobalPlus BNZ - Mortgage One BNZ - Rapid Repay BNZ - TotalMoney BNZ- Std, FlyBuys Cairns Lockie Credit Union Auckland Credit Union Baywide Credit Union North Credit Union South eMortgage Fidelity Life Finance Direct First Credit Union GEM Home Loans General Finance Global Home Loans HBS HBS Bank Heretaunga Building Society Housing NZ Corp HSBC HSBC Premier HSBC Premier - with Insurance Policy Kiwibank Kiwibank - Capped Kiwibank - Capped Variable Kiwibank - Offset Kiwibank - Special LVR 80% max Liberty Moorhouse Mortgages Napier Building Society National Bank National Bank - Special LVR 80% max Nelson Building Society No.8 Mortgages NZ Home Loans NZ Mortgage Income Trust NZF NZF (LVR <80%) NZF (LVR >80%) NZF Standard 70 NZF Standard 80 NZMFG Home Loans Perpetual Trust Pioneer - Swift Presto Mortgages PSIS Public Trust SBS SBS Bank SBS Special Silver Fern Southern Cross Sovereign TSB Bank TSB Bank Special United Home Loans - Prime Waiarapa Building Society Wairarapa Building Society Westland Mortgages Westpac Westpac - Capped rates Westpac - Choices Everyday
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News Quiz
Rolling Stone Mick Jagger and which industry body have been talking

[invessi]

Sorry about all the garbage at the end of that last post, not sure what happened there??

[Xerof]

Some will no doubt say the garbage commences after the first line

[invessi]

Some will no doubt say the garbage commences after the first line

Well, that sort of comment shows your lack of insight and understanding, not just on a local scale but a global scale, these are very difficult times and it may get a lot worse, particularly when America loses its reserve currency status, at least NZF are making an honest attempt against adversary to protect the interests of all current stake holders, the only way the directors of NZF benefit personally is to benefit all of us, you cannot say that about Wall street or many other entities that come to mind!

[minimoke]

the only way the directors of NZF benefit personally is to benefit all of us, you cannot say that about Wall street or many other entities that come to mind!

Not entirely true. They still have their director remuneration to fall back on. Mark Thornton took in $186,000 in director fees in YE2011 and John Callaghan took in $196.000 before he resigned. NZF spent nearly $700,000 on Director fees -and this was in reward for them driving the SP from around $0.22 to $0.03. Mark Thorntons shares are worth around $300k - the longer they can keep NZF going the longer they can be guaranteed at least some cash from the company through their fees.

[invessi]

Not entirely true. They still have their director remuneration to fall back on. Mark Thornton took in $186,000 in director fees in YE2011 and John Callaghan took in $196.000 before he resigned. NZF spent nearly $700,000 on Director fees -and this was in reward for them driving the SP from around $0.22 to $0.03. Mark Thorntons shares are worth around $300k - the longer they can keep NZF going the longer they can be guaranteed at least some cash from the company through their fees.

You can expect a very different picture when their next report comes out, staff laid off, remuneration reduced, no company cars and don't forget that Pat Redpath has put about $3m of his own money in to shore the company up!