Marac is buying GMAC New Zealand's retail motor vehicle financing book from GMAC NZ and Cari NZ for about NZ$70 million in a deal the finance company's parent, Pyne Gould Corporation, says is a clear fit with its proposed marriage to the Canterbury Building Society and Southern Cross Building Society and aspirations to obtain a banking licence.
Marac says it's paying cash for the acquisition, which includes GMAC NZ's secured loan receivables, finance leases and operating leases. The deal comes after GMAC NZ announced in 2008 that it would cease retail finance business and transition out of wholesale business.
Marac says the deal backdates the rewards and risks of ownership to May 31, subject to completion of the deal which is expected on July 30. The final price is subject to a post-completion adjustment based on customer receipts and expenses from May 31 until completion.
Completion of the deal is conditional upon terminating financing arrangements behind GMAC. Marac said the deal could be terminated if the conditions can't be, or aren't, satisfied on or before August 31. Read Marac's full statement here.
Pyne Gould Corporation CEO Jeff Greenslade described the GMAC acquisition as a clear fit with his firm's strategic direction, its proposed merger with Canterbury Building Society and Southern Cross Building Society to create a "Heartland Bank" and aspirations to obtain a banking licence from the Reserve Bank.
"The GMAC customer base will enhance access to our target market of heartland New Zealanders – small and medium-sized businesses and New Zealand families – and provide us with the opportunity to present them with finance, investment and insurance solutions,” Greenslade said.
GMAC was formerly owned by General Motors but is now owned by private equity firm Cerberus Capital Management.