Joint venture finance firm

Press, 25 July 1985, Page 22

Joint venture finance firm

Feltex, N.Z., Ltd, and Fisher and Paykel Industries, Ltd, have formed a new finance company with assets of more than SISSM. The chairman of the two companies, Messrs Lloyd Brown and Maurice Paykel, said the venture, yet to be named, will be owned equally and will specialise in the consumer finance market. The company will involve merging the business activities of their wholly owned subsidiaries, Feltex Finance, Ltd, and FP Finance, Ltd. The merger is subject to Commerce Commission approval. Messrs Brown and Paykel said that the merging comCes were specialists in • fields and were compatible in both their size and style of operation. The objective of the merger was to combine the experience and specialisation of both companies in consumer finance and television rentals in the development of a major consumer finance-orientated company. Existing lending and funding activities will provide a platform for future growth. Feltex and Fisher and Paykel will each appoint three directors: Messrs W. Wilson (chairman), R. H. Norton and J. C. Stenhouse (from Fisher and Paykel), P. J. D. Stanes (deputy chairman, whose alternate will be Mr R. A. Pearson), I. L. Gunthorp and P. J. Hutchinson (from Feltex).

Mr R. B. Nelson will be managing director.

All existing staff would be retained. Of the new company's total assets, SIO3M will be advanced to more than 150,000 hire-purchase customers. More than 400 retail outlets will offer hire-pur-chase facilities for the company. A further S2SM was invested in television receivers and video recorders rented to more than 40,000 households. This rental activity will make the new company the second largest television rental company in New Zealand. National Rentals will continue to offer its services through 300 retail outlets. Support of rental specialty stores will also continue. Seventy-five Sanyo rental outlets will provide rental services for Sanyo television receivers and Fisher video recorders. From this base the company will extend the level of existing credit card, lease and personal loan business now financed. It is in this area of consumer finance that the company sees potential for growth. The lending and rental activities were financed by debenture borrowings in excess of SIOOM from more than 12,000 investors. This provides the venture with a broad borrowing base. The rights of existing debenture holders will continue to be fully protected by debenture trust deeds. The joint venture will begin on October 1.