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- Release Date: 24/07/12 12:18
- Summary: RIGHT: GFL: GFNZ Grp - One for four rights issue is fully underwritten
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GFL
24/07/2012 10:18
RIGHT
REL: 1018 HRS GFNZ Group Limited
RIGHT: GFL: GFNZ Grp - One for four rights issue is fully underwritten
Media Release July 2012
GENEVA FINANCE ANNOUNCES ITS NEW ONE FOR FOUR RIGHTS ISSUE IS FULLY
UNDERWRITTEN
NZAX-listed auto loan provider GFNZ Group Ltd (Geneva) having successfully
placed 45 million additional ordinary shares to Federal Pacific Group Limited
(FedPac) in March 2012, now advises that it has completed negotiations with
Fedpac to have the proposed one for four rights issue to all shareholders
announced in February 2012 fully underwritten.
As a result Geneva will be issuing a further 56.2 million ordinary shares,
generating a further $1.5 million of new equity on top of the $1.2 million
raised in March 12.
Under the rights issue all existing shareholders are able to subscribe for:
oOne new ordinary share for every four ordinary shares they hold at 2.75
cents per share.
oFor every three shares subscribed for under this rights issue, Geneva will
issue a further two options to subscribe for new shares. Each option issued
will entitle the holder to subscribe for one further share at 8.00 cents per
share three years after the issue date.
oMore shares than their one for four entitlement with applications for
additional shares being allocated on a prorate basis
As a consequence, depending on the degree to which other shareholders take up
shares under the rights issue, FedPac which became a cornerstone shareholder
with a 19.99% share of Geneva in March 12, could see its shareholding remain
at the current 19.99%, or increase to as high as 35.6% in September 2012,
or 43.2% in three years time (September 2015).
Take over panel approval is being sought for Fedpac's underwrite which is
also subject to shareholder approval at a meeting of shareholders scheduled
to be held in late August 2012.
Over the past four years Geneva has worked hard to reposition and rebuild its
operations. Significant milestones include:
oRepayment of more than $127.2m of debt funding to investors (including
interest of 11.0% per annum to public debenture holders);
oReduced group operating costs by more than $29m per annum;
oAcquisition of the Quest Insurance and Stellar debt collection operations to
complement core financing activities;
oImplementation of online internet-based scorecards and loan application
systems for introducers;
oRestructure of its operations to allow the new business model to focus on a
market segment that offers attractive yields that carry considerably less
risk.
Geneva Managing Director David O'Connell says:
"Following on from the successful placement in March, we see this transaction
as a further significant and positive development for the group. Fed Pac's
continuing support is a significant step in allowing the company to source
new funding which is core to expanding the new business model while
maintaining our scheduled debt repayment program."
ends
About Geneva
Geneva is a New Zealand-owned finance company that provides finance and
financial services to the consumer credit and small to medium business
markets. Geneva commenced business on 7 October 2002. Geneva's loans are
originated through three distribution channels (Direct, Broker and Dealer),
processed by the central sales desk then administered through a national
operations centre located at Mt Wellington, Auckland.
The company borrows money by the issue of debenture stock. It also has a
banking facility with BOS International (Australia) Limited.
Geneva (GFL) is listed on the NZAX. There are 224,698,631 issued shares held
by 2,629 investors.
About Federal Pacific
FedPac's operations throughout the Pacific region include investments in
Banking, Personal and Business Finance, Money Transfer and Foreign Exchange
Trading. The company was incorporated in 1993 and is based in Auckland, New
Zealand.
Alexander Communications
Kate Alexander
+64 (0)27 244 6094
[email protected]
For further information:
End CA:00225215 For:GFL Type:RIGHT Time:2012-07-24 10:18:45
(20min delay)