The directors of Mike Pero Real Estate (MPRE) yesterday signed an agreement to pay out a $6.75 million dividend to its shareholders.

MPRE chief executive Pero is one of the shareholders, while the other is Mike Pero Mortgages Ltd (MPM) which is now owned solely by the Australian-based Liberty Financial Group.

Pero has long wanted a dividend to be paid out to MPRE shareholders.

This was initially to repay a debt to MPRE but, more recently, it was to repay money he borrowed from the Chow brothers to settle the MPRE debt.

Until now, MPM’s directors – Sherman Ma and Mark Collins – have opposed a dividend pay-out.

As a result, this week saw the erstwhile business partners battling it out over the issue at the Auckland High Court.

The proceedings were merely the latest round in the long-running and complex dispute between the two parties, which was kicked off by Pero’s overpayment of himself back in 2014.

While Pero argued that the parties were deadlocked over the dividend, as well as related issues, and that their business relationship was irrevocably broken, MPM disputed that.

On Wednesday, MPM’s lawyer, Greg Blanchard QC, told the court that the dividend offer was on the table and under consideration from the parties involved.

Blanchard says a resolution approving the dividend has now been signed and presented to the court.

While the proceedings were meant to conclude today with a summing up of evidence presented, Blanchard confirms this particular hearing is over.

Blanchard was unable to comment further.

However, TMM understands that written submissions will be presented to the presiding judge, Justice Ed Wylie, next week.

Justice Wylie is then expected to make a decision on whether the parties are in a deadlock over broader business issues including governance and remuneration.

Pero was also unable to comment on the latest turn of events.

But the agreement over the dividend pay-out is a win for him – and TMM spotted him celebrating and drinking Moet champagne at the Pullman Hotel on Thursday afternoon.

Read more:

Failed MPM relationship doesn’t mean deadlock 

MPM Judges asks: what’s the argument?