General Finance stock market listing moves closer
The stock market listing of non-bank lender General Finance moved a step closer this week as a deal with a listed cash shell was approved by shareholders.
Wednesday, August 1st 2018, 12:08PM
by Dan Dunkley
In May, cash shell Mykco agreed a reverse takeover by Corporate Holdings Limited, the parent company of General Finance and Investment Research Group. In effect, the deal saw Corporate Holdings take over the shell.
This week the deal was approved by Mykco shareholders, paving the way for Corporate Holdings to join the NZX through a so-called backdoor listing.
The plans follow financier Brent King's takeover of General Finance in late December. King, the former boss of finance company Dorchester Pacific teamed up with Malaysia-based Rewi Bugo and investment banker Marvin Lee for the deal. General Finance founders James Lockie and William Cairns cashed out.
In a statement to the stock market, Mycko approved the terms of the deal with Corporate Holdings, and formally appointed Brent King managing director of the company and its subsidiaries. The company will change its name to General Capital Limited and will trade under the Ticker code of NZ:GEN.
King said: "This is a very important day for Mykco Ltd. We have obtained all approvals required for Mykco to purchase the shares in Corporate Holdings Limited that it does not already own, including the approval from Mykco shareholders today. The contract for Mykco to purchase the shares in Corporate Holdings Limited that are not already owned by Mykco Limited is now unconditional. It is expected that the transaction will be completed on 3rd August 2018."
He added: “Once the transaction is settled then Mykco will change from being a shell to a company with significant assets, cash in the Bank and positive cash flows.”
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