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NZF in due diligence for reverse listing

NZF Group, the listed financial services shell company blocked from liquidating by its major noteholder this year, is in due diligence for a possible reverse listing, with a view to signing a deal before the end of the month.

The Auckland-based company has entered into a non-binding terms sheet over a potential acquisition as a backdoor listing for the business, with all parties in due diligence investigations with a view to signing a contract on or before Nov. 20, it said in a statement. The deal has the firm's biggest noteholder's support, and if certain conditions are met, NZF's board will update the market on the details of the transaction and of any capital restructure the firm will have to go through.

"The NZF board strongly recommends that NZF noteholders and NZF shareholders should not undertake any action in respect of their respective securities that they hold until such a time as NZF is able to provide further information about the possible restructure, and preferably until such a time as the stakeholders receive a full package of information, including the independent reports," the company said.

NZF's board has been looking for a company to use its shell as a reverse listing after noteholder Nessock Custodians delayed liquidation at a special meeting in August to try to find more value in the business.

The board first suggested liquidation in April. Restructuring plans aimed at returning the company to profitability fell over when auditor RSM Prince resigned a day after NZF was forced to restate its first-half results for a second time.

The shares last traded in December last year at 1 cent, valuing the firm at $1.1 million.