By DANIEL RIORDAN
Baycorp Holdings has taken its first step into the Australian credit reporting business by securing a 9.9 per cent stake in transtasman business partner Data Advantage.
The $A45.6 million ($61 million) purchase, described by Baycorp chairwoman Rosanne Meo as a strategic investment, gives Baycorp a piece of Data Advantage's credit reporting business alongside the debt collection operations already shared through its joint venture with Data Advantage and Commonwealth Bank of Australia.
The shares, acquired over recent months at an average price of 464Ac, take Baycorp to the threshold of the 10 per cent ownership limit allowed under recently demutualised Data Advantage's constitution.
That limit is due to be lifted next July, said Mrs Meo.
Data Advantage is listed on the Australian Stock Exchange and has a market capitalisation of $A464 million ($619 million).
With the convergence of technology and the shared Australasian ownership of all financial institutions, Baycorp's Australian customer base is becoming a larger part of its total business.
Baycorp managing director Keith McLaughlin said last month, as the company released a record profit, that it would not be too long before income from the Australian debt collection business topped its counterpart in New Zealand.
This latest investment quickens expansion on the other side of Baycorp's business.
Mrs Meo said Baycorp was continuing to look for opportunities with key players in Australasia and Asia.
She said Baycorp had not had any discussions with Data Advantage about a board seat, and it was not an issue the company would be raising.
The company had no intention of moving overseas.
"With our technology base, location is irrelevant, but we have a long history as a New Zealand company and Baycorp will continue to remain in New Zealand for the foreseeable future."
Baycorp expands Aussie business
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