NZX sells, writes down, stake in Appello funds management business
By Paul McBeth
Dec. 24 (BusinessDesk) – NZX Ltd., which operates and regulates the stock exchange, has sold its 30% stake in funds management business Appello Services Ltd.
The stock exchange said it sold the holding to the company’s existing shareholdings, including long-time financial markets participant Craig Stobo, because Appello no longer fit with NZX’s strategy.
The bourse operator will book a $70,000 write-down on the sale, which will be included in the 2010 accounts.
It bought the Appello stake in 2007 for $650,000 and pumped in a further $30,000 the following year, though the carrying value depreciated through the global financial crisis. As at June 30, NZX’s investment in Appello was worth $279,000, according to the first half report.
The shares were unchanged at $1.55 in trading today, and have slumped 34% this year.