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

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news