Shares in Pyne Gould Corp (NZX: PGC) plunged to a record low after yesterday's annual meeting, where chairman Bryan Mogridge told investors the firm will probably quit New Zealand.
The stock sank 19% to 22 cents in trading this morning, with about 0.08% of shares on issue changing hands. The shares have shed a third of their value this month and are now trading at a 41% discount to what managing director and controlling shareholder George Kerr paid earlier this year.
This afternoon, the share price recovered one cent to 23 cents.
Mr Kerr paid 37 cents a share to take control of the company with 77%, while warning that the difficult process of selling assets meant Pyne Gould was no longer a generator of dividend income.
The trading comes a day after the company's annual meeting in Auckland, where Mr Mogridge repeated his warning that the company will not pay dividends and told investors the board is "seriously considering the domicile of the company", which is unlikely to be New Zealand, and will update the market on its decision when it is made.
The firm has almost exited its last New Zealand asset, with Mr Kerr overseas trying to finalise a deal to sell the Perpetual wealth management assets. It had previously sold the corporate trust unit in a management buyout.
Pyne Gould is looking to get a return of more than 15% over a decade on its $97.5 million of net assets.
Its Torchlight Investment Group owns 19.7%of investor Torchlight Fund 1, which runs until 2019, and Torchlight Fund 2, which holds remaining bad loans carved off when Marac Finance was sold into Heartland New Zealand.
Pyne Gould's Torchlight Securities owns 27% of Equity Partners Infrastructure Company No 1, which in turn owns 17% of UK motorway services company Moto International Holdings.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Who are the winners and losers in Labour's re-shuffle? Rob Hosking explains
- Nevil Gibson discusses his latest Editor's Insight on regional development
- AFT Pharmaceuticals founder Dr Hartley Atkinson talks about why he's going public
- Nevil Gibson breaks down the Air New Zealand Wine Awards
- Political commentator Bryce Edwards on police censorship
- NBR's Cameron Officer talks about the NBR Car of the Year 2015