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.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Sir Bob Jones: Why the newspaper industry is deservedly dying
- ACC buys high, sells low as Intueri surprises investors with cascade of bad news
- Air NZ reiterates warning to shareholders of increased competition
- Super Fund suspected window dressing at Milford
- Stonewood Homes liquidation becoming murkier
Most listened to
- Week in Review: a wrap of NBR Radio's top stories, interviews and analysis
- Craig-Williams trial: Otago University defamation specialist on 'Where to from here?"
- Testy exchange over Super Fund evidence
- 'It’s not as big as it was last year but it’s still the biggest game in town' – Paul Maher talks up TVNZ's audience
- Hydroworks CEO Andrew Rodwell on the company's prospects post-funding.