Pioneer takes stake in Goldfields

Pioneer Credit has taken a 14.1 per cent stake in Kalgoorlie-based financial institution Goldfields Money for $2.3 million, as the two companies make plans for a joint working relationship.

The financial services provider made the acquisition by purchasing 2.1 million shares held by Pioneer managing director Keith John’s private investment vehicle, Midbridge Investments.

Midbridge began building its interest in Goldfields following Pioneer’s $40.2 million initial public offering in May last year.

Midbridge was offered a seat on the board of Goldfields in February, which was filled by Pioneer non-executive director and HBF managing director Rob Bransby.

Mr John said the acquisition was an important step in the company’s growth plans, ahead of the launch of its first financial products in late 2015.

“In addition to the work we are now undertaking with Goldfields, we remain highly focussed on our ongoing engagement programs and our commitment to customer service,” he said.

“We are also continuing to work closely with our vendor partners, including Australia’s major banks, on future opportunities within the residential lending space.

“Ultimately, our intention is to help our customers get their finances back on track so that they can be reconnected to our vendor partners in order to access home loans,” Mr John said.

Pioneer has begun discussions with Goldfields on a memorandum of understanding over a range of ways in which the two companies can work together for mutual benefit.

Shares in Pioneer were 0.8 per cent lower at $1.78 per share at 10am.

Goldfields shares were up 5.8 per cent to 90 cents per share.