Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


REPEAT: Brierley reconvenes old gang in Mercantile placement

REPEAT: Brierley reconvenes old gang in A$2M placement for Mercantile Investment

(Removes extraneous words in second paragraph)

By Paul McBeth

Feb. 27 (BusinessDesk) – Corporate raider Ron Brierley has reconvened some of his old gang via an A$2 million placement for his latest enterprise, ASX-listed Mercantile Investment Co.

Former Brierley International executive and Guinness Peat Group director Ron Langley and Gibsbourne Pty, a subsidiary of ASX-listed Ariadne Australia whose executive director is long-time Brierley lieutenant Gary Weiss, will each subscribe for A$1 million, or 12.5 million shares, in Mercantile, with the placement expected today.

The shares were placed at 8 Australian cents apiece, a premium to their last traded price on the ASX of 7.3 cents. The company’s market value is currently A$18.3 million.

The funds will be used for “general investment purposes”, Mercantile said in a Feb. 23 statement to the ASX.

Brierley and his team at GPG were ousted last year in a shareholder revolt over plans to split up the investment company. That firm is now in wind-down mode, selling assets to return capital to shareholders.

Mercantile is at least the third diversified investment vehicle for Brierley, who built GPG after being forced out of Brierley Investments in the early 1990s. The empire named for him had struggled to recover from the 1987 sharemarket crash and now exists as GuocoLeisure, with its primary listing on the Singapore stock exchange.

Brierley seized control of Mercantile, then called India Equities Fund, last month when shareholders agreed to a deal giving him 54 percent of the company and its chair in return for his stakes in Copper Strike, Trinity Group, ING Community Living Group, Australian Pharmaceutical Industries and Trojan Equity.

He emerged as a substantial shareholder India Equities last July when he bought 5.05 percent of the cashed-up investment vehicle for A$293,714. That same month he lifted his stake to 14.8 percent.

Last year, the 74-year-old investor told the Sydney Morning Herald the new fund won’t be anything “too big” or “too ambitious,” but that he isn’t planning on exiting the corporate world any time soon.

Brierley has also reconnected with old colleagues in New Zealand where he emerged as a co-investor with Selwyn Cushing, a former Brierley Investment chairman, in Wellington’s struggling upscale department store and property owner Kirkcaldie & Stains.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news