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

 


UPDATED: Guinness Peat exits Tower stake for $118 mln

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

(Adds First NZ Capital handled sale in second paragraph, updates shares)

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. First NZ Capital handled the sale, of which at least 19.9 percent was placed to institutions and retail investors at $1.70 per share, according to a separate substantial security holder notice.

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 rose 0.9 percent to 57.5 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

 

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Half Empty: Dairy Prices Drop To Lowest Since August 2009

Dairy product prices fell to the lowest level in more than five years in the latest GlobalDairyTrade auction, led by declines in butter milk powder and whole milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news