FlexiGroup Snaps Up Fisher & Paykel Finance

By Glenn Dyer | More Articles by Glenn Dyer

FlexiGroup (FXL) is paying $315 million for the finance arm of Fisher & Paykel Appliances (called Fisher & Paykel Finance) and is running a $150 million entitlement issue to help meet the cost.

The issue will be made at $2.20 a share in the ratio of one new share for every 4.46 Flexi shares held, a 13.7% or to the last FlexiGroup share price of $2.55.

The transaction is subject to Overseas Investment Office and Reserve Bank of New Zealand approvals.

The purchase price will be paid in two stages – $234 million cash and $61 million in deferred payments.

The rights issue was structured as an accelerated non-renounceable entitlement offer.

Brokers Citi and CBA Equities launched the raising on yesterday morning, seeking institutional acceptances by 3pm today.

FXL 1Y – Flexigroup to buy Fisher & Paykel Finance

Flexigroup’s acting chief executive David Stevens said in a statement the deal would enhance the scale of the group’s existing New Zealand operations and provide opportunities for growth.

“Cards are a scale driven business and F&P Finance has over 430,000 active card holders, providing FlexiGroup with a trans-Tasman interest free cards offering, and a compelling proposition for our retail partner," he said.

Fisher & Paykel Finance is New Zealand’s leading independent non-bank finance business with receivables of $NZ662 million.

Flexigroup also reaffirmed its 2016 full-year profit guidance of $92 million-$94 million, excluding the Fisher & Paykel Finance acquisition.

FlexiGroup shares are expected to resume trading tomorrow.

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About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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