Turners looks to boost MTF stake
Turners is making an offer to buy shares in Motor Trade Finances (MTF) through its subsidiary Turners Finance Limited.
Monday, 14 September 2015
It wants to lift its holding in MTF to almost 20%.
The cash offer will be sent to all MTF shareholders on Thursday and will remain open until October 17.
The offer price is $1.15 per share compared to the most recent traded price through the ShareMart securities market of 94 cents per share. No brokerage is payable.
Turners Limited chief executive Paul Byrnes said Turners Finance has 218,452 or 0.95% of the total MTF ordinary shares on issue.
But it writes about10% of new loans originated through MTF, a percentage that is increasing.
"We are making this offer to enable us to increase our shareholding to better reflect our commitment to the MTF model. We expect our book to continue to grow. We would also like to think our expertise in the wider financial services and insurance industries could bring value to the business for the benefit of all shareholders. We therefore feel a more meaningful shareholding up to 20% is appropriate and at the same time we believe our offer provides an attractive opportunity for MTF shareholders who wish to sell their ordinary shares, given liquidity for those shares can be limited.
"This is not a takeover offer. We will not, in any circumstances, hold 20% or more of the ordinary shares in MTF as a result of this offer. We are quite relaxed about the final shareholding we finish up with and we are not able to withdraw, nor will we increase the price of this offer once it has been made.”
Turners will need the approval of the MTF board to lift its stake to that level because MTF’s constitution restricts holdings over 10%.
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