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
- Weldon, Clear's former owners had 'battle of wills' after acquisition, witness says
- MARKET CLOSE: NZ shares drop, Tower and Air NZ fall, Kathmandu gains
- Auckland rent juggernaut kicks back into gear
- NZ dollar drops as June rate-cut bets fade, RBA to stick with inflation target
- Rich Lister Rolleston parts company with Murray & Co
Most listened to
- Niall Ferguson rips into the TPP - and Trade Minister Todd McClay responds
- Why China is key to Vista's growth: CEO Murray Holdaway
- In his Editor’s Insight, Nevil Gibson examines the role of controversial biotech crops in an industry mega-takeover
- NBR's Rob Hosking "the election campaign has started"
- Publisher Philip Macalister discusses the increasing importance of mortgage brokers to banks