Marac admits errors, and says not again

The offer, which is underwritten by First NZ Capital Securities, and is part of a plan to get achieve its goal of becoming a publicly listed banking and asset management company.

The company says that the capital raising has a number of benefits for MARAC investors:

• $35m of new equity capital into MARAC, ensuring compliance with bank and NBDT capital requirements;
• MARAC's balance sheet will be further strengthened through the sale and transfer of impaired or likely to be impaired property development loans for total consideration of circa $175m, comprising of $125m of cash and a loan note of $50m;
• The additional equity and proceeds from property development loan divestment will increase MARAC's liquidity; and,
• PGC will be debt free and hold additional cash, providing it with financial flexibility to support growth initiatives of its businesses.

One of the mistakes was that it "strayed" into property development to source profits and enhance dividends.