N.Z.M.C will buy Group Rentals

Press, 27 February 1980, Page 26

N.Z.M.C will buy Group Rentals

New Zealand Motor Corporation, Ltd, : / and Black Horse Finance, Ltd, have agreed to the sale of Group Rentals N.Z., Ltd, to N.Z.M.C., if the take- . over bid of Black Horse ; Finance for General Finance, Ltd, is successful. At present. Group Rentals is a wholly-owned subsidiary of General Finance, which acquired the balance of the Group Rental shares it did not then already own in 1975. N.Z.M.C. will pay for the purchase, which is subject to the consent of the Examiner of Commercial Practices, in cash. The chairman of N.Z.M.C. (Mr L. M. Papps) said yesterday: “I believe that the Black Horse bid for General Finance will succeed, and that accordingly the corporation will subsequently purchase Group Rentals. This acquisition will be in line with the corporation’s policy of diversification, and Group Rentals will provide it with a wider earnings = base. “Group Rentals is a sound business, well managed, and with potential for growth, and the corporation intends to operate it as a separate company on fire same basis as at present. Security of employment of the staff of Group Rentals will be preserved.” Black Horse Finance has

served notice of a talti over offer on General Ffi ance, and the cash offer j ' 230 c a share will be ses to General Finance sham holders soon. The major® shareholder in Bias Horse Finance is gj National Bank of Ne# Zealand, Ltd. ql Late last year it' thought that a battit might develop betwem N.Z.M.C. and the NatioS [ Bank over control of Get eral Finance, when bot concerns obtained conseii to acquire a majorit ■ interest in the finanjj company, which transact’ most of the hire-purchas ; business of N.Z.M.C. J But 10 days ajj N.Z.M.C. announced thit had decided not { maintain its substantia interest in General Fin ance. Mr Papps said the that the corporation in tended to invest the pro ceeds from the sale of if General Finance shares ii a diversification project. General Finance doe not say how much Grow Rentals contributes to it profit, but the television? rental company is knowt to be very profitable. .4. In its report for 1975 the year General Financi acquired the whole of Group Rentals, the finances company reported the in-_. elusion of four trading of Group Rentals and said that its contribution was $218,000.