Motor Trade Finances urges shareholders to take their time whilst the board mulls interest from Heartland Bank and Turners Finance

 Motor Trade Finances Limited (MTF) is urging shareholders to await an update from the board on the approaches from both Turners Finance and Heartland Bank.

Turners has made an unsolicited offer to buy up to 20% of MTF's shares for $1.15 each. And MTF says it has also received an approach from Heartland that may be relevant to shareholders’ consideration of the Turners offer.

"The board received a letter on 18 September from Heartland, reaffirming its interest in MTF. You will recall that in 2014 Heartland approached MTF with a takeover proposal that did not proceed. While there is no certainty at this point that Heartland will make an offer or that any offer, if made, would be recommended by your board, its recent approach does indicate that shareholders would be advised to give themselves time to assess all available options and await further advice from the board," MTF chairman Stephen Higgs said in a statement . 

"The board intends to engage with Heartland, as well as taking advice on the matter. We will provide an update to ordinary shareholders, taking account of the issues raised by the Turners’ offer and the Heartland approach, before the Turners’ offer period closes," said Higgs.

He also said an internal valuation completed by MTF last year, with the help of an external expert, valued MTF shares, "for dry (non-originating) shareholders", at $1.16 per share.

"The valuation was substantially higher for active shareholders, as in addition to the base value per share shareholder originators enjoy value from their total shareholding in the form of extra commission as a consequence of their relationship with and control over MTF," Higgs said.

Here's MTF's full statement and here's our story from Friday after Heartland's issued a statement.