KEY POINTS:
Propertyfinance group is to stand in the sharemarket for up to 19.9 per cent of shares in the Canterbury Building Society (CBS).
The $5 a share bid for 1.3 million shares would cost $6.5 million if successful, Barney Sundstrum, chairman of NZAX-listed propertyfinance said today.
Shares in CBS closed at $4.16 yesterday, having ranged between $3.98 and $4.34 in the past year.
Mr Sundstrum said CBS and propertyfinance were similar businesses in that they specialised in non-bank first mortgage lending.
It was a business propertyfinance understood well and represented a long-term investment by propertyfinance in the industry.
"We respect absolutely the heritage and reputation of CBS and wish to see that being built on," Mr Sundstrum said.
"Strong locally owned companies offer New Zealanders a chance to keep their financial business within New Zealand. This compares to the increasingly multi-national ownership of other financial organisations."
Propertyfinance had no intention of launching a full takeover bid for CBS but did wish to discuss with CBS's board future joint growth opportunities.
Last month, CBS posted a 20 per cent rise in net interim profit, benefiting from amalgamation and growth in the Canterbury economy.
Profit after tax was $948,683 for the six months ended September, up from $788,028 a year earlier. Total assets rose 17 per cent to $346 million, and operating revenue was up 31 per cent at $4 million.
CBS was formed from the merger of Ashburton Building Society and Christchurch-based SMC Building Society, which became effective last April.
Propertyfinance shares closed at a year high of $1.30 on Monday, having been as low as 96c in the past year.
It has instructed Forsyth Barr to act for it in the market stand, starting at 10am today. The stand will last until the close of trading on Friday, if not completed or closed earlier or extended.
- NZPA
