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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news