Liberty Financial intends to stick with takeover target Mike Pero

The newest investor on the share register of takeover target Mike Pero Mortgages says it has taken a long-term position in the mortgage broker.

Liberty Financial last week bought a 10 per cent stake in Mike Pero, enough to block a $26.3 million takeover offer from New Zealand Finance, but says it is not seeking to extract a higher bid.

Liberty managing director Sherman Ma said: "That is certainly not the case. We have not ever taken short-term positions in things, it has always been for the long term. We think we can bring some benefits to the organisation. We are by no means looking at an exit."

After Liberty stood in the market seeking shares at $1.10 apiece, Mike Pero's shares rose amid hopes that NZ Finance would have to pay more. They closed last night steady at $1.05 in line with NZ Finance's $1.05 offer price.

Ma said Liberty could help develop Mike Pero by boosting its product range and providing financial and organisational resources.

"Mike Pero represents an incredible franchise, a great platform and prospects and with the right injection of intellectual capital or partnerships, it could grow multiples of where it currently is," Ma said.

"We have not formed a firm position on whether it is better to be listed or not. It can be private as well, it's really a minor point. The main point is how we can bring phenomenal benefits to the organisation."

He said a position could as easily be taken through buying shares in NZ Finance.

Liberty Financial was looking to develop a relationship with both Mike Pero and NZ Finance and would take a seat on the board if it were invited, Ma said.

New Zealand Finance Holdings said it would expect Liberty Financial to bid for a seat on the Mike Pero Mortgages board now it had obtained its stake. NZ Finance is due to launch a formal takeover at $1.05 a share for Mike Pero on February 14.

"Our bid is continuing ... [it] wasn't conditional on obtaining 90 per cent," said NZ Finance managing director John Callaghan.

NZ Finance bought a 54 per cent stake in Mike Pero from Gould Holdings for 82c a share in November, sparking a full takeover offer that netted just 1 per cent of the company. It revealed details of the fresh bid on January 31.

Independent advisers had valued Mike Pero at between 96c and $1.09.

Callaghan said NZ Finance had close associations with Liberty and was "looking forward to working with them in the future".

Established in 1997, Liberty describes itself as Australia's market leader for non-conforming home and motor loans. Its speciality is lending to borrowers who do not meet the rules of traditional lenders.

It is the biggest provider of finance to both NZ Finance and Mike Pero.

-additional reporting NZPA