Hawk set to swoop on Cynotech, shares soar
Hawk set to swoop on Cynotech, shares soar
by Paul McBeth
Nov. 16 (BusinessWire) –Allan
Hawkins is set to swoop on Cynotech Holdings Ltd., the small
finance company he chairs, after his private investment
company announced plans for a takeover bid. The shares
surged almost 32% to 14.5 cents.
Hawkins, who was jailed
in the 1990s for his role in the Equiticorp ‘H-fee’,
said in a letter to shareholders Cynotech Securities Group
Ltd. intends to make a full takeover offer, with notice
expected on or around Dec. 10 this year.
Cynotech grew out of Rocom Wireless, a satellite phone company, and Hawkins got involved in 2004 when he helped capitalise the company’s newly established finance unit. He declined to comment further, saying more information will be revealed once the takeover notice is lodged.
Cynotech Holdings boosted its profit to $1.3 million in the six months ended June 30, from $1.2 million a year earlier, and Hawkins was highly critical of finance companies that didn’t make adequate provisions for bad loans. The company, which makes about two-thirds of its revenue from lending on cars, has grown by taking on the loans books from National Finance and Western Bay Finance. The Commerce Commission is prosecuting the company over the charging of interest and fees on its Budget Loans unit.
(BusinessWire) 17:33:30