Finance and insurance provider Dorchester Pacific today announced it has entered into an unconditional sale and purchase agreement to acquire the 18.2% shareholding in Turners Auctions currently held by interests associated with Milford Asset Management.
The cash consideration is $9.07 million or $1.82 per share (ex dividend).
A deposit of five cents per share has been paid on the execution of the agreement, with the balance of $1.77 per share payable on 20 June 2013.
Dorchester CEO, and executive director Paul Byrnes, says the Turners Auctions board has indicated he will be welcomed on to the board.
“There is a natural alignment between Dorchester and Turners Auctions,” says Byrnes.
“Clearly finance and insurance of motor vehicles are key drivers for Turners. Both are areas we can add considerable value to as more than 65% of Dorchester’s new lending is for private and commercial motor vehicles.
“Plus our recently released Mainstream Insurance focuses on motor vehicle related insurance products to the consumer market.
“Of course, we appreciate any involvement as a provider of finance and insurance services has to make sense for all Turners Auctions’ shareholders,” says Byrnes.
“We look forward to working with the Turner’s board and management to achieve positive initiatives to that end.”
“We are also supportive of Turners Auctions’ initiative of increasing local vehicle sourcing through its ‘Cash Now’ product, and IT initiatives – including the imminent deployment of a new website.”
Dorchester chairman, Grant Baker, says the investment supported its strategy to develop an end-to-end finance business.
“It allows us to participate in the origination or ‘front-end’ of the market.
“This complements our acquisition of EC Credit Control – a leading supplier of credit control and debt recovery services – in October last year, which gives us a profitable position at the back-end of the market.
“We are also continuing to evaluate further acquisition opportunities that may broaden our financial services offering,” Baker says.
