BUSINESSDESK: Ellerston Capital, a fund manager controlled by Australian billionaire James Packer’s family interests, has emerged as a substantial holder of shares in New Zealand online auction site Trade Me.
Sydney-based Ellerston, set up in 2004 by the Packer family's holding company, Consolidated Media Holdings, owns 5.18% of Trade Me, according to a substantial security holder notice to the NZX.
Ellerston bought the shares in 19 separate transactions between April and August at an average share price of $A2.73, according to the notice.
At today's ASX price of $A2.97, Mr Packer's 20.5 million shares would have appreciated $A4.9 million.
Dual-listed Trade Me went public in December last year when Fairfax Media sold down its holding to raise funds to support its publishing operations.
The stock was unchanged today (NZX: TME) at $3.87 and is rated a "hold" based on the consensus of eight recommendations compiled by Reuters. Analysts have a price target of $3.86 for the shares.
James Packer inherited the family company in 2005 after the death of his father, Australian businessman Kerry Packer.
His investments include shares in various gaming and entertainment groups, including Melbourne's Crown Entertainment Complex, Macau's City of Dreams, Seven Network and Australia's pay television network, Foxtel.
Fairfax Media acquired Trade Me for $750 million in 2006. It reduced its stake via last year’s initial public offering and in June, sold down its holding in the Wellington-based company by 15% at a discounted price of $A2.70 a share.
That leaves 51% of Trade Me's stock in Fairfax hands.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- WATCH LIVE: Clinton, Trump go head-to-head in the first presidential debate
- FMA witnesses ‘enthusiastic amateurs’: Warminger defence
- Commerce Commission reveals the most complained-about companies
- Green Party to step aside for Labour in Mt Roskill by-election
- AngelEquity launches with three investment offers
Most listened to
- ANZ's Philip Borkin and NBR's Jason Walls on what's next for the kiwi dollar on Currency Talk
- AngelEquity's Bill Murphy on why his platform won't cater for retail investors
- IP lawyer Kim McLeod says Monster Energy will probably fail to stop a tools company registering a trade mark
- FMA lawyer Justin Smith counters the Goldman Sachs defence
- In Editor's Insight, Nevil Gibson uncovers the serious side of improbable research