New investor in Geneva Finance
NZAX-listed GFNZ Group (Geneva Finance) has announced a share placement giving financial services company Federal Pacific Group (FedPac) a 19.9% stake.
Wednesday, February 29th 2012, 6:30AM
Geneva issued FedPac 45 million shares at 2.75c per share, meaning FedPac paid $1.24 million for its stake in the car loan provider.
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.
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."
Former Geneva Finance debenture holders last year voted for a debt-for-equity swap that allowed the company to stave off receivership.
Geneva shares last traded at 1.3c.
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