Wellington, March 1 NZPA - Timaru-based businessman Allan Hubbard is strengthening South Canterbury Finance by putting his family company's shareholdings in Helicopter (NZ) Ltd and Scales Corp Ltd into the lender.

Southbury Corporation Ltd, which is indirectly controlled by Mr Hubbard and his wife, sold its 100 percent shareholding in Helicopters (NZ) and 64 percent holding in Scales Corp to South Canterbury Finance in return for 317.7 million newly issued fully paid shares worth $152.5 million and $10m of cash on February 28.

The transactions were reviewed by independent experts approved by the Crown, under the company's Crown guarantee, who certified that they were at fair value and on an arms length basis.

The company is working with the Treasury on its application for acceptance into the extended retail deposit guarantee scheme effective from October 12, 2010 through to December 31, 2011.

Canterbury Finance also disclosed today that provisions for losses on impaired or non-performing assets have been increased by $180.3m and as a result the company reported a preliminary unaudited net loss after tax of $154.9m for the half-year to December 31.

South Canterbury Finance chief executive officer Sandy Maier said sectors other than property were largely performing satisfactorily.

"The half-year result incorporates a total of $229m of losses on asset realisations and additional allowances for impairment. The underlying trading results show a breakeven result for the six months which is creditable given the significant disruption and costs experienced during this period," he said.

South Canterbury Finance now holds approximately 79.7 percent of the equity of Scales Corp.

Mr Hubbard said both Helicopters (NZ) and Scales Corporation were both excellent businesses with which he has had a long and personal association, as a founder of Helicopters (NZ) and as a driving force in Scales.

"Scales is an innovative company closely linked to New Zealand's backbone industries. Helicopters (NZ) started life eradicating gorse on South Island hills and evolved to be an internationally recognised helicopter operator working in many countries supporting global resource companies, government funded research and tourism."

Mr Hubbard said his absolute confidence in the future of South Canterbury Finance and the role it played in providing funding for the growth of businesses, particularly in provincial New Zealand, had led to the further investment by Southbury Corporation.

"The earnings contributions of these two successful companies are now part of South Canterbury Finance, which materially and substantially changes the earnings profile and prospects for the Company. The acquisition of Helicopters (NZ) and Scales Corporation will provide a superior outcome for all stakeholders."

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