PGC says no decision made to shift to ASX, ditch Perpetual

PGC says no decision made to shift listing to ASX, ditch Perpetual

July 5 (BusinessDesk) - Pyne Gould Corp, which is being investigated by the markets regulator over related-party loans, says no decision has been made on whether to relocate to the ASX and divest its Perpetual Trust.

The wealth manager halted trading in the 23 percent of its stock that isn't owned by managing director George Kerr and US hedge fund Baker Street Capital after Fairfax Media reported the plans. Pyne Gould said the report was based on a leaded email.

"PGC wishes to clarify that no decision or agreement regarding or concerning the sale of Perpetual or moving the primary listing of PGC to the ASX has been made," it said in a statement after the close of trading. "A number of options have been under consideration for some time, however no decision has yet been made."

Fairfax Media cited correspondence earlier this week between Kerr and public relations consultant David Lewis, who used to be an adviser to former Prime Minister Helen Clark. Fairfax cited Kerr saying Pyne Gould would make a release “saying PGC is relisting on the ASX and focusing on its sole business Torchlight ... and divesting Perpetual group.''

Perpetual would be run by current executive Patrick Middleton and Kerr would remain in Australia.

The company's shares last traded at 29 cents yesterday, valuing the company at about $60.7 million. The stock isn't listed among the ASX's upcoming floats.

Pyne Gould and Kerr are being investigated by the Financial Markets Authority over related party lending between Perpetual and the Kerr-controlled Torchlight fund.

The Court of Appeal yesterday turned down a bid by Pyne Gould to keep details of the investigation confidential. The FMA is seeking to recover some $25 million in related party loans made by the Pyne Gould subsidiary as trustee of the Perpetual Cash Management Fund. As at June 23, some $13 million remained outstanding.

The loans were made to Torchlight Fund No 1 LP and were deemed by the FMA to not be in the best interests of investors in the Perpetual funds.

In May, Pyne Gould’s auditor KPMG quit over unresolved differences as to what should be considered related party loans. That was a week after the wealth manager’s managing director John Duncan unexpectedly departed, having joined the firm in 2009 after a 15-year career with Macquarie.

(BusinessDesk)

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