Perth company plans NZ listing
Australian Consolidated Insurance (ACIL) has announced plans to “reverse list” on the New Zealand Stock Exchange through the shell of NZ financial services firm Lombard Group.
NZ media reports have highlighted the unusual aspects of the proposal, under which Lombard would acquire 100% of ACIL unlisted ordinary shares and options, subject to regulator and shareholder approval.
The listed entity would provide the company with access to “capital and market opportunities and shareholder liquidity”, ACIL said in a statement last week. It expects to complete the reverse listing by October.
The Perth-based broking, underwriting agency and premium funding company’s Executive Chairman, Wayne Miller, says the restructure will create NZ’s only listed insurance intermediary and improve prospects for shareholders of both firms. He says the company would eventually list on both the NZ and Australian stock exchanges.
Lombard is the parent of Lombard Finance and Investments, which went into receivership last year owing $NZ127 million ($102.1 million) to about 4400 investors.
The mortgage book Lombard has left is to be put into a separate special purpose vehicle and the shell Lombard company will effectively become a vehicle for ACIL, which is an unlisted company.
Mr Miller says the deal will “provide Lombard with a unique opportunity for diversification into the insurance services sector leveraged on the proven track record of the ACIL business model”.
ACIL handles about $80 million in premium and has 18 subsidiary companies, including well-known heavy equipment underwriting agency Cemac and NZ specialist motor underwriter Classic Cover. But there are some cautionary notes coming from NZ business media and the company’s own annual report.
NZ’s National Business Review says ACIL was last year chasing new capital to remain a going concern.
The company’s 2008 annual report reveals ACIL started negotiations last December over a share placement to help meet more than $4 million of “deferred consideration commitments”.
“These commitments relate to payments due for companies acquired by ACIL, which has been on a buying spree in the past couple of years,” the publication said.
It says ACIL’s auditor, Grant Thornton, noted doubt over the group’s future if it did not raise capital or keep up support from its subsidiaries, banks and major shareholders.
But Mr Miller told the magazine ACIL is backed by “substantial infrastructure” and that its market value “would well exceed” any liabilities.
He was not available for comment when insuranceNEWS.com.au called.
NZ media reports have highlighted the unusual aspects of the proposal, under which Lombard would acquire 100% of ACIL unlisted ordinary shares and options, subject to regulator and shareholder approval.
The listed entity would provide the company with access to “capital and market opportunities and shareholder liquidity”, ACIL said in a statement last week. It expects to complete the reverse listing by October.
The Perth-based broking, underwriting agency and premium funding company’s Executive Chairman, Wayne Miller, says the restructure will create NZ’s only listed insurance intermediary and improve prospects for shareholders of both firms. He says the company would eventually list on both the NZ and Australian stock exchanges.
Lombard is the parent of Lombard Finance and Investments, which went into receivership last year owing $NZ127 million ($102.1 million) to about 4400 investors.
The mortgage book Lombard has left is to be put into a separate special purpose vehicle and the shell Lombard company will effectively become a vehicle for ACIL, which is an unlisted company.
Mr Miller says the deal will “provide Lombard with a unique opportunity for diversification into the insurance services sector leveraged on the proven track record of the ACIL business model”.
ACIL handles about $80 million in premium and has 18 subsidiary companies, including well-known heavy equipment underwriting agency Cemac and NZ specialist motor underwriter Classic Cover. But there are some cautionary notes coming from NZ business media and the company’s own annual report.
NZ’s National Business Review says ACIL was last year chasing new capital to remain a going concern.
The company’s 2008 annual report reveals ACIL started negotiations last December over a share placement to help meet more than $4 million of “deferred consideration commitments”.
“These commitments relate to payments due for companies acquired by ACIL, which has been on a buying spree in the past couple of years,” the publication said.
It says ACIL’s auditor, Grant Thornton, noted doubt over the group’s future if it did not raise capital or keep up support from its subsidiaries, banks and major shareholders.
But Mr Miller told the magazine ACIL is backed by “substantial infrastructure” and that its market value “would well exceed” any liabilities.
He was not available for comment when insuranceNEWS.com.au called.