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

 


Brierley sells A$2.7 mln of GPG shares

Brierley sells A$2.7 mln of GPG shares

By Paul McBeth

Sept. 1 (BusinessDesk) - Veteran corporate raider Ron Brierley sold A$2.7 million of shares in Guinness Peat Group, the investment firm he founded in the early 1990s, and has raised more than $20 million since he started selling in late 2012.

Brierley sold the shares at 54 Australian cents apiece on Aug. 29, according to a notice to the stock exchange. At the current exchange rate, that's about $3.02 million, adding to the $17.73 he'd already raised.

That takes his running tally sold to 35 million shares since he started winding down his holding, and leaves him with 16.9 million shares, representing about 1.2 percent of the company's voting rights.

The shares closed at 63 cents on the NZX on Friday, and have gained 6.8 percent this year. The stock is rated an average 'hold' based on five analyst recommendations compiled by Reuters, with a median target price of 62 cents.

GPG was wrested from Brierley's control in 2011 when shareholders blocked a plan to split the company up along regional lines, and has since liquidated the bulk of its portfolio, leaving it with holding UK threadmaker Coats. The firm plans to rebrand as Coats once it settles outstanding pension liabilities in the UK, an issue that's taking longer than previously anticipated.

Brierley's sell down comes as his latest diversified investment vehicle, ASX-listed Mercantile Investments, supports the $36 million acquisition of Tower's life insurance business with a $4.75 million commitment. GPG was formerly a cornerstone investor in Tower.

Brierley seized control of Mercantile, then called India Equities Fund, in 2012 when shareholders agreed to a deal giving him 54 percent of the company and its chair in return for his stakes in Copper Strike, Trinity Group, ING Community Living Group, Australian Pharmaceutical Industries and Trojan Equity.

That's since been watered down to 46 percent after Mercantile completed a takeover of Murchison Metals via a scheme of arrangement, which let investors take either cash or shares.

Mercantile lifted its total financial assets to A$41.4 million in the 12 months ended June 30 from A$29.9 million a year earlier, generating a 20 percent gain in total income to A$7.53 million from gains on the sale of investments and revaluations of its assets.

The ASX-listed firm's shares last traded at 13.5 Australian cents, and have slipped 3.6 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Wool Exports Jump To The Highest In More Than A Decade

New Zealand wool exports jumped to their highest level in more than a decade in June, aided by a lower currency and strong demand from China, the nation’s largest market. More>>

ALSO:

Surreal Estate: Home Values Rise At Fastest Rate In Seven Years

The latest monthly QV House Price Index shows that nationwide residential property values for July have increased 10.1% over the past year which is the fastest annual rate since 2007... The Auckland market has increased 18.8% year on year. More>>

ALSO:

New Employment Laws: Talley’s AFFCO Workers To Strike

The decision comes after the Talley’s owned company walked away from mediation last week and applied to end bargaining under the government’s new employment laws - the first such application since the law came into effect. More>>

ALSO:

Private Action: Employer Pleads Guilty Over Forestry Death

The CTU has always known that the death of forestry worker Charles Finlay was due to the poor health and safety practices of his employer... "The CTU, with the support of Charles’s family, needed to take this ground breaking private prosecution." More>>

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news