Share
GFL
28/03/2012 11:19
PLACE
REL: 1119 HRS GFNZ Group Limited
PLACE: GFL: Share Placement Settled
GFNZ GROUP LIMITED, ANNOUNCES SHARE PLACEMENT
WITH CORNERSTONE SHAREHOLDER
SETTLED TODAY
28th March 2012
The share placement agreement with Federal Pacific Group Limited, announced
on 28th February 2012 has settled to day. As a consequence, GFNZ Group Ltd
(Geneva) has placed 45 million additional ordinary shares with Federal
Pacific Group Limited (FedPac) at the agreed issue price of 2.75 cents per
share. This transaction gives FedPac a 19.9% stake in Geneva.
The full text of the 28th February 2012 announcement is attached below.
Media Release February 2012
GENEVA FINANCE ANNOUNCES SHARE AND DEBT PLACEMENT
WITH CORNERSTONE SHAREHOLDER / INVESTOR
NZAX-listed auto loan provider GFNZ Group Ltd (Geneva) has announced the
successful placement of 45 million additional ordinary shares to Federal
Pacific Group Limited (FedPac), a financial services firm operating
throughout the Pacific region. FedPac will become a cornerstone shareholder
and has also arranged additional funding lines for Geneva to enable the group
to expand its loan book growth and assist the ongoing refinancing of existing
funders via a capital-insured professional investor scheme.
The ordinary share placement at 2.75 cents per share will result in FedPac
taking a 19.9% stake in Geneva. As part of the agreement with Fed Pac, Geneva
has also undertaken, subsequent to the placement, to make an offer of a pro
rata rights issue to all shareholders, including Fed Pac, at the placement
price of 2.75 cents per share.
Over the past four years Geneva has worked hard to reposition and rebuild its
operations. Significant milestones include:
o Repayment of more than $121m of debt funding to investors (including
interest of 11.0% per annum to public debenture holders);
o Reduced operating costs by more than $25m per annum;
o Acquisition of the Quest Insurance and Stellar debt collection operations
to complement core financing activities;
o Implementation of online internet-based scorecards and loan application
systems for introducers;
o Restructure 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:
"We see this transaction as a significant and positive development for the
group. Fed Pac's support will enable us to fast-track the new business model
expansion while maintaining our scheduled debt repayment program. Geneva is
operating in a market that has seen many competitors fall away, and we see
the expansion of the profitable new business model into this space as the
key to putting the group onto a long term and sustainable, profitable
platform."
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 179,759,631 issued shares held
by 2,651 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:00221251 For:GFL Type:PLACE Time:2012-03-28 11:19:20
(20min delay)