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

 

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Oil: 2017 Block Offer Petroleum Tender Launched

New Zealand is well-placed to take advantage of the economic benefits of oil and gas exploration, Energy and Resources Minister Judith Collins announced today at the launch of the 2017 Block Offer petroleum tender. More>>

ALSO:

OECD And Zero Carbon Reports: Environmental Pressures Rising In New Zealand

New Zealanders enjoy a high environmental quality of life and access to pristine wilderness. However, New Zealand’s growth model, based largely on exploiting natural resources, is starting to show its environmental limits with increasing greenhouse gas emissions and water pollution ... More>>

ALSO:

Statistics: Record Net Annual Migration Levels Continue

In the February 2017 year, 71,300 more migrants arrived in New Zealand than left, Stats NZ said today. This equalled the previous annual record set in January 2017. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news