Dorchester buys into St Laurence

Finance company Dorchester Pacific has paid $29.6 million for a quarter of property and funds company St Laurence.

Dorchester helped fund the purchase by issuing 4.77 million new shares to St Laurence owner, St Laurence Mortgage Holdings, that will give the latter 13 per cent of the expanded Dorchester. Dorchester has an option to acquire a further 25 per cent in St Laurence by March 2010.

The shares were issued at $2.05 each against the closing price of $2.10. Dorchester shares were up 2c to $2.12 shortly after the announcement.

In February, St Laurence signalled it was considering inviting a new strategic partner into the business.

Managing director Kevin Podmore said St Laurence expected to be able to leverage its expertise and Dorchester's wider client base to enhance its footprint in the financial services industry.

Podmore will become a non-executive director on the Dorchester board and Dorchester chairman Barry Graham and chief executive Andrew Walker will become directors on the St Laurence board.

- NZPA