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

 


Milford snaps up 5% of Mercer as Hubbard manager sells out

Milford snaps up 5 percent of Mercer after Hubbard manager sells out

By Suze Metherell

Jan. 23 (BusinessDesk) – Milford Asset Management has spent $2.3 million buying into Mercer Group from the stake once-owned by deceased Timaru businessman Allan Hubbard, building a 5.2 percent stake in the stainless steel producer.

The Mercer shares were part of the assets disputed between Hubbard’s widow, Jean, and the statutory managers of the various Hubbard entities, which was eventually settled last year. The administration sold 31.1 million shares on market at 16 cents apiece, according to substantial shareholder notices filed to the stock exchange. Milford bought 14.3 million of those shares.

“We had the opportunity with the the Hubbard asset management fund sell down to get in there and get some volume,” Brooke Bone, senior analyst with Milford Asset Management said.

Bone said it was a growth stock and Milford has put 3.37 percent of the stock into their KiwiSaver Milford Active Growth Wholesale Fund, with the remaining 1.81 percent going to the PIE fund, Milford Dynamic Wholesale.

Mercer hired former senior Fairfax New Zealand and PMP executive Rodger Sheppard to head the company in 2011 after a strategic review of the business opened the door for former CEO Howard Milliner to leave.

“The company has been substantially restructured over the last few years,” Bone said. “We met the new CEO and were quite impressed with the tailwinds behind it.”

The company had a series of setbacks thanks to the global financial crisis in 2008, when it was caught out with too much debt on its books and halted repayments to South Canterbury Finance, when Hubbard was a cornerstone shareholder, after breaching its banking covenant.

This week’s shareholder notices show that debt was satisfied by the transfer of 6.3 million shares to Crown Asset Management Ltd, the entity established to wind up the affairs of failed finance companies that drew on the government’s retail deposit guarantee scheme, including Hubbard’s SFC.

Shares in Mercer fell 4 percent, to 24 cents, and have climbed 56 percent this month.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

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:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

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