Australasian investment and finance company St Laurence has been given the go-ahead to create a $1 billion funds management business under a single company called St Laurence Ltd.
Debenture stockholders voted in favour of the proposal at a special meeting on Wednesday.
St Laurence bought the part of the fundsand asset businesses it did not already own for just over $64 million while at the same time injecting more than $23 million into the company.
Liquidity remained very strong, as did funding inflows, the company said.
Companies and funds, such as those holding the management rights to the National Property Trust and NZX-listed St Laurence Property & Finance, will now come under the one umbrella, under the man-agement of St Laurence Ltd.
The companies have been acquired by the main finance arm for the group, St Laurence Mortgages, which is the company to be renamed St Laurence Ltd.
The St Laurence chairman, Jim Sherwin, said that the new structure would significantly increase assets under management, enhance transparency and certainty of income, and diversify income streams.
Debenture stockholders voted 99 per cent in favour of the proposal.
St Laurence's board has tightened asset ratio targets. The equity ratio has risen from 9 per cent to 17 per cent.
Managing director Kevin Podmore said St Laurence was now very different from others in the finance market. It had a wider activity base than a traditional finance company.
