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

 


GPG sells Tower stake for $118M, leaving it with Coats

Guinness Peat exits last asset outside Coats, sells Tower stake for $118 mln

Sept 30 (BusinessDesk) - Guinness Peat Group has sold its stake in Tower for about $118 million leaving the UK threadmaker Coats as its sole investment and signalling the end of its portfolio divestment.

GPG sold about 69.6 million shares at $1.70 apiece, the company said in a statement to the NZX. That’s 5.6 percent below the level they traded on Friday. Today the stock fell 1.1 percent to $1.78.

Shares of Tower, which sold its life business to Fidelity Life Assurance for about $145 million in cash and liabilities in May, have fallen 6.4 percent this year, while the NZX 50 Index climbed 18 percent.

GPG plans to rebrand as Coats following the divestment process. The latest sale would lift its cash holdings to about 390 million pounds.

Shares of GPG last traded unchanged at 57 cents, valuing the company at $802 million. The stock is rated a ‘hold’ based on the consensus of seven analysts polled by Reuters.

GPG plans to return capital to shareholders once its asset sales are completed and the business transformed into Coats, though the total of the return depends on the UK’s Pensions Regulator review of GPG’s obligations under the Coats Pension Plan and Brunel Holdings Pension Scheme, which remain on its books.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news