Cash Converters International Limited
(ASX:CCV) will invest $5 million to buy a 25 per cent stake in New Zealand Master Franchisor.
The purchase will include corporate, stores, franchise contracts, financial services and software.
Both parties have agreed on terms for either party to buy 100 per cent of Cash Converters New Zealand in five years time.
Cash Converters will also lend $15 million to Cash Converters New Zealand by way of a fully secured, interest only facility repayable in 2016 or earlier at an interest rate of 8 per cent per annum.
The deal is expected to complete in January 2014.
Cash Converters posted a net profit of $32.9 million in fiscal 2013.
