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


Pyne Gould expects to sell remaining NZ assets next year

Pyne Gould expects to sell remaining NZ assets next year, chairman Mogridge says

By Paul McBeth

Dec. 10 (BusinessDesk) - Pyne Gould Corp, the asset management firm controlled by George Kerr, expects to sell its remaining $4.8 million of assets still in New Zealand next year as it looks to quit this country and relocate to Guernsey.

Chairman Bryan Mogridge told shareholders in Auckland today the bulk of the company’s $151.8 million of assets are located in Australia and the UK and it expects to sell the vestiges of its local portfolio next year, according to speech notes published on the NZX.

“Those remaining $4.8 million of assets are being actively marketed for sale and it is highly likely that PGC will have no assets remaining within New Zealand following the calendar year 2014,” Mogridge said.

That would leave Pyne Gould with its core assets, which are a 31 percent stake in Kerr’s Torchlight LP and a 27 percent stake in EPIC, which holds a 17.5 percent share of British motorway operator MOTO and manages the Torchlight partnership. Torchlight’s investments include full ownership of property developer Residential Communities Ltd, a 29 percent stake in ASX-listed Lantern Hotel Group and an 11 percent holding in UK regional newspaper group Local Media.

Shareholders will today vote on whether to approve re-domiciling in Guernsey and shift its listing to the London Stock Exchange, something Mogridge said the company has been working towards for the past two years.

A London listing is expected to increase the company’s profile with potential new investors who are familiar with its strategy targeting distressed assets, and broaden the shareholder base to improve share liquidity.

The company is seeking to deliver compound growth north of 15 percent over the medium to long term, meaning it will delivery “lumpy results” and has a policy of not providing market guidance, Mogridge said.

“However, we will continually outline our strategies and performance against those, but some years will be more bountiful than others which is the nature of the markets we do business in,” he said.

Pyne Gould has bought back about 1.8 percent of the company’s shares on issue at an average price of 43.11 cents per share as part of a buyback programme signalled last month, where it hopes to buy up to 5 percent.

The average buyback price is almost a 17 percent premium to the 37 cents per share offered by Australasian Equity Partners No 1 LP to take the company private last year.

AEP, owned by Kerr and Californian hedge fund Baker Street Capital, built a 76.77 percent stake during its takeover, and will have effectively crept up to 78.16 percent if it hasn’t participated in the buyback.

The shares were unchanged at 45 cents yesterday, and have jumped 73 percent this year.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>


Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>


Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>


Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>


Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>


Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>


Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>


Get More From Scoop

Computer Power Plus
Search Scoop  
Powered by Vodafone
NZ independent news