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

 


Late raid on GPG shares pushes price to 2 ½-year high

Late raid on Guinness Peat shares pushes price to 2 ½-year high

By Suze Metherell

Jan. 17 (BusinessDesk) – Shares of Guinness Peat Group, the cash rich owner of a thread-making business that’s attracted investors including George Soros, have jumped to a 2 ½-year high after someone scooped up 1 percent of the company.

The shares climbed as high as 64 cents yesterday after an investor, likely to be an offshore fund, bought 19.7 million shares just before the close of trading. The stock traded at 63 cents today and has gained 7.6 percent so far this year.

GPG has about 404 million pounds of cash after selling its investment portfolio. It aims to return capital to shareholders and rebrand as its sole remaining asset, UK-based threadmaker Coats, though any return is on hold until it resolves a dispute with the UK’s pension regulator. Its pension liabilities will reduce as global interest rates begin to rise, closing the gap on rates used to benchmark those funds.

“Someone paid a reasonable premium to get that stock,” said James Lindsay, portfolio manager at Tyndall Investment Management. “The pension scheme did hurt them, but if you were to take a longer term view about UK interest rates normalising, it would help reduce those pension rates.”

Soros is among offshore investors in GPG, having bought an 8 percent stake in the company last year. Others include US bank JPMorgan and American fund manager Invesco.

In a statement made by the GPG chairman to the NZX in December the board expressed uncertainty about when the dispute may be resolved.

“The GPG board is deeply concerned that despite the enormous cost and management effort which the regulatory intervention is imposing on both GPG and Coats, we are still not close to a conclusion of these matters,” said the statement.

Shortly before Christmas the regulator delivered a warning to the company that its pension funds were insufficiently funded, however whether this will result in any further ‘financial support direction’ for the pension plans is not yet decided.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news