F&P Finance future being considered

Fisher & Paykel Appliances says it is reviewing the ownership of its finance business and is considering selling it.

Friday, 16 November 2007

"Fisher & Paykel Finance has been operating in the New Zealand finance sector for over 30 years. It has a strong portfolio of products supported by a diverse funding base and has performed consistently well for the group."

FPA says that over the past few years it has received a number of unsolicited expressions of interest to acquire its finance company.

"Given recent strong interest, FPA has decided to investigate the level of potential interest in the business."

FPA chief executive John Bongard says he is expecting "market consolidation will occur in the finance sector in the short to medium term and so the timing is right to consider our strategic options, including possible sale."

He says the Farmers Card and Q Card businesses have performed strongly in the finance portfolio.

"These will be attractive assets to potential buyers.

However we will only divest the business if offers exceed our internal value expectations."

FPA's board has not yet made any decision as to whether to sell the finance company. Deutsche Bank will be FPA advisers through the process.

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