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

 


Pyne Gould eyes 15% returns over 10 yrs, won't pay dividends

Pyne Gould seeks 15% returns over 10 years, won't pay dividends

By Paul McBeth

Nov. 28 (BusinessDesk) - Pyne Gould Corp, which sold its corporate trust unit September, is seeking returns of more than 15 percent over the next decade and doesn't expect to ever pay dividends, according to chairman Bryan Mogridge.

The company, 77 percent owned by managing director George Kerr, expects to sell its Perpetual trust and wealth management units before the year's end, leaving it without any substantial New Zealand assets, Mogridge told shareholders at today's annual meeting in Auckland. If investors are looking for quarterly growth and returns "PGC is unlikely to satisfy your requirements," he said.

"PGC is unlikely to ever pay a dividend as we mentioned at the time of the share split," Mogridge said in speech notes published on the NZX. "We have $97.5 million of net assets and we want to ensure that over a 10-year period we are getting a return that exceeds 15 percent and we believe we can achieve this."

The company's board is "seriously considering the domicile of the company," which is unlikely to be New Zealand, and will update the market on its decision when it is made, he said.

Kerr didn't appear at today's meeting as he was overseas in a bid to close the Perpetual sale, and sent his apologies through a notice to the stock exchange earlier today.

Selling Perpetual will leave Pyne Gould with no direct operating businesses in New Zealand. Its Torchlight Investment Group owns 19.7 percent of investor Torchlight Fund 1, which runs until 2019, and Torchlight Fund 2, which holds the remaining bad loans carved off when Marac Finance was sold into Heartland New Zealand.

Pyne Gould’s Torchlight Securities owns 27 percent of Equity Partners Infrastructure Company No. 1 which in turn owns 17 percent of UK motorway services company Moto International Holdings.

"There have been a lot of 'nay-sayers' with regard to Torchlight, but as you have already heard today, Torchlight is well-positioned and tracking to achieve a return of at least 20 percent over the life of the fund," Mogridge said. "This will impact positively on the PGC balance sheet through its unit ownership and as well the general partner's performance fees during the life of the fund."

Pyne Gould's shares rose 3.9 percent to 27 cents in trading today, having declined 18 percent this year.

Kerr paid 37 cents a share to take control of the company, while warning that the difficult process of selling assets meant Pyne Gould was no longer a generator of dividend income.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news