Article: GE Money buys PRG's finance arm for $145m

United States-owned GE Money New Zealand is paying $145 million for the finance arm of Eric Watson's Pacific Retail Group (PRG).

The deal, subject to Commerce Commission clearance, will make GE Money New Zealand's biggest finance company with assets of about $3.5 billion, almost 500,000 customers and 700 staff. GE Money says it plans to expand further, with more takeovers possible.

PRG will get a $75m capital profit from the sale after costs, some of which will be used to help fund its struggling British retail business PowerHouse through to its 2007 breakeven target.

PRG would also repay $63m in secured capital notes and about $30m in bank debt, PRG chairman Jock Irvine said.

GE Money ...

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