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

 

Drones: First Certificate Issued Under New UAV Rules

Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say the first certified flight of an unmanned helicopter under new aviation rules is a great example of how they can enable commercial use. More>>

ALSO:

GE Swedes And Cow Deaths: Plant Analysis Backs Up Earlier Advice

The industry body is recommending that farmers do not feed Herbicide Tolerant (HT) swedes to cows in spring when the animals are in late pregnancy or early lactation. DairyNZ is also advising caution if farmers are considering other leafy varieties. More>>

ALSO:

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news