The Warehouse says it plans to raise $115 million - mostly
through a share placement to institutions - to set up its own
financial services operation.
The retail giant said its strategic ambition was to become a
leading New Zealand financial services company.
Part of the plan will involve The Warehouse buying the
business of Diners Club New Zealand for $3 million.
The Warehouse Group, through its retail brands, already
offers a range of financial services products through a joint
venture and various third party arrangements.
The acquisition of electrical goods retailer Noel Leeming in
2012 and the strategic reshaping of the the Warehouse Group
changed its potential scale in financial services, the
"With the current volume of receivables generated and the
opportunity for further growth, it is now the right time for
the Warehouse Group to pursue its own 'captive' financial
services business," the company said.
In the first half of 2015 the company will roll out a range
of new products from its own financial services business.
The Warehouse Group chief executive Mark Powell said that
with the acquisition of Noel Leeming, it became clear that
the company had the scale across the Group to offer a
significant financial services business.
The capital raising would be by way of a $100 million
institutional placement at $3.23 per share, to be conducted
March 6, and a $15 million share purchase plan available to
New Zealand resident shareholders.
The Warehouse Group Founder Sir Stephen Tindall said both he
and his Tindall Foundation would participate in the equity
raising to maintain their level of ownership.
The Warehouse comprises 92 Warehouse stores, 76 Noel Leeming
stores and 63 Warehouse Stationery stores in New Zealand and
several online businesses.
- By Jamie Gray, APNZ business reporter