Geneva completes Pacific Acquisition

Media Release 26th October 2018 GENEVA FINANCE LTD (GENEVA) COMPLETES ACQUISITION OF 60% SHAREHOLDING IN FEDERAL PACIFIC FINANCE LTD (TONGA) Geneva announces that it has completed the acquisition of a 60% shareholding in Federal Pacific Finance Ltd, Tonga (FPFLT). FPFLT is a profitable operation with total assets of TOP$6.4m (NZ$4.3m). Under the transaction, Geneva has acquired the shareholding in FPFLT with an effective acquisition date of 1 April 2018, so the Geneva group will get the benefit of 60% of the profits of this business from that date. Managing Director, David O'Connell says, "We are pleased to have completed this transaction which we see this as a strategic stake in a Pacific Island finance operation, offering medium and long term growth opportunities into the Pacific Rim". The purchase price of NZ$3.81m is unchanged from that announced on 17th August of this year and comprises GFL shares to be issued: 2,500,000 Issue Price: (cps) 70 cents Shares Consideration $1,750,000 Cash $1,410,000 - Vendor Loan, 5 years at 8.5% $650,000 Total: $3,810,000 The share issue at 70 cps represents a 14.7% premium against the current share price, however the directors consider the 70 cps price more accurately reflects the underlying value of Geneva's ordinary shares The vendors, are related parties to Federal Pacific Group Ltd (NZ) who is the major shareholder in Geneva. David O'Connell also commented that "Geneva is currently pursuing further acquisitions and the equity component of this acquisition equating to 46% of the total transaction value, enhances Geneva's current conservative Equity / Total Assets gearing ratio, leaving the company in a strong position to complete any further transactions." ends About Geneva Finance Limited Geneva Finance is a New Zealand-owned finance company that provides finance and financial services to the consumer credit and small to medium business markets. The company provides hire purchase finance, and personal loans secured by registered security interests over personal assets such as motor vehicles and household goods (e.g. furniture and appliances). Geneva Finance has been providing funding for family vehicles at competitive rates and a quick approvals process since 2002. Geneva Finance Limited (GFL) is a listed company on the New Zealand Stock Exchange (NZX alternative market, NZAX). End CA:00325858 For:GFL Type:GENERAL Time:2018-10-26 15:16:58