Pyne Gould reaps $A13.3m for van Eyk unit, keeps $A5.6m convertible note

George Kerr

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

Pyne Gould Corp, the South Island asset management firm controlled by George Kerr, sold its van Eyk research and management unit for $13.3 million, though kept a stake using a convertible note structure.

The Christchurch-based firm sold its 38 percent stake to ASX-listed Merrick Capital, an entity associated to London-based wealth management investor Andrew Barnes, it says in a statement.

The price was paid in cash, and came immediately after van Eyk repaid a $A7.2 million loan to Pyne Gould unit Torchlight Fund LP 2. The firm bought the van Eyk stake in 2010 for $A5.05 million.

Pyne Gould kept a $A5.6 million convertible note holding in van Eyk, which formed part of the $A8 million consideration paid to bundle Perpetual Asset Management and Perpetual Portfolio Management into the Australian research firm. The rest of the sale was in cash.

"Van Eyk has around five times the funds under management of Perpetual, and the merged businesses will enjoy very large synergy benefits from quality, scale and eliminating duplication," Mr Kerr says.

Pyne Gould plans to focus on its Torchlight group, which has specialised in squeezing value from distressed assets and its assets in Australia and the UK.

The shares were unchanged at 29 cents.

(BusinessDesk)


1 ยท Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

1 Comment & Question

Commenter icon key: Subscriber Verified

Duplication... not good news for staff who are the first to go.

I wonder if this Torchlight deal will be as greater fiasco as its deal with SCF?

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7133 -0.0107 -1.48%
AUD 0.9357 -0.0008 -0.09%
EUR 0.6559 -0.0087 -1.31%
GBP 0.4670 -0.0046 -0.98%
HKD 5.5299 -0.0861 -1.53%
JPY 88.6870 -0.8930 -1.00%

Commods

Commodity Price Change Time
Gold Index 1185.6 0.900 2015-05-27T00:
Oil Brent 62.7 -1.190 2015-05-27T00:
Oil Nymex 57.6 -0.470 2015-05-27T00:
Silver Index 16.6 -0.099 2015-05-27T00:

Indices

Symbol Open High Last %
NZX 50 5757.9 5777.6 5757.9 0.34%
NASDAQ 5096.3 5106.6 5106.6 -0.43%
DAX 11716.1 11773.8 11771.1 -0.68%
DJI 18154.1 18154.1 18163.0 -0.35%
FTSE 7033.3 7049.6 7033.3 -0.13%
HKSE 28162.2 28162.2 28081.2 -2.23%
NI225 20590.3 20655.3 20472.6 0.39%