Pyne Gould negotiates $8.9M exit from EPIC fund management amid Kerr takeover

By Paul McBeth

Feb. 14 (BusinessDesk) – Pyne Gould Corp, which has effectively been taken over by major shareholders George Kerr and Baker Street Capital, has negotiated an $8.9 million exit from the management of Equity Partners Infrastructure Company No 1 (EPIC).

The fund will pay $5.6 million to terminate its management contract with PGC’s Equity Partners Infrastructure Management (EPIM) after receiving advice the PGC takeover would trigger pre-emptive rights in the shareholders’ agreement for its 17.5 percent stake in UK motorway service operator, Moto.

In addition to the termination payment, the PGC unit is entitled to a performance fee of $3.3 million.

The payments will be satisfied by EPIC issuing ordinary shares or a combination of cash and shares.

EPIM will continue to manage the fund for the next 12 months at no extra cost, and cover legal fees relating to the change of ownership.

In November, EPIC sold its 1.24 percent stake in Thames Water for 34 million pounds, leaving the fund with just the Moto asset to realise.

The Kerr-managed Torchlight Fund No 1 LP loaned the fund some $13.2 million and owns 5.3 percent of EPIC’s shares, as well as $12 million in convertible loan notes that were issued to let EPIC maintain its stake in its motorway assets.

Australasian Equity Partners No 1, the Kerr and Baker Street vehicle, today declared its takeover bid for PGC unconditional, and extended the closing date for another two weeks. The investment vehicle has secured almost 66 percent of the company.

PGC’s shares were unchanged at 36 cents in trading today, a discount of 1 cent to the AEP offer.

(BusinessDesk)

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