Dorchester Pacific looks to sell division

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The sale of Dorchester Pacific's investment services arm could be completed by the end of next month.

A due diligence exercise is currently underway ahead of the planned sale, with a number of bidders falling out of the running.

Dorchester Pacific's chief executive Andrew Walker told the Dominion Post that he intends for the New Zealand-based finance firm to complete the sale by the end of February. The fundraising exercise could generate between NZ$2.5 million (A$2.2 million) and NZ$5 million.

He added that the funds would be used for further acquisitions, saying: "Clearly, shoring the funds of the company up is a good thing and, secondly, you don't do that just for fun, you do that because there are some opportunities in the marketplace that you want to take advantage of."

In November of last year, Dorchester Pacific revealed it had reaped a profit of NZ$309 million during the first half of 2007.