Pyne Gould reduces Wrightson stake, buys more Heartland
BUSINESSDESK Pyne Gould Corp, the company controlled by George Kerr and Baker Street Capital, has sold down its stake in rural supplies company PGG Wrightson, while lifting its holding in finance company Heartland New Zealand.
The Christchurch-based Pyne Gould reduced its holding in Wrightson to about 7 percent from 9.5 percent on March 5. It began buying shares in Heartland through its wholly owned subsidiary Torchlight Securities from March 1 increasing its holding to about 10.4 percent from about 6 percent.
Pyne Gould is under offer from Kerr and Baker Street, who want to take the company private and have extended their bid until the end of March. They currently hold 70.5 percent, and have waived the minimum 90 percent target they initially set in their 37-cents-a-share offer.
The takeover bid emerged after Marac Finance, previously its major asset, was carved out and placed in the Heartland New Zealand merger, which plans to seek a banking licence.
Pyne Gould's assets include a stake in the Equity Partners Infrastructure Co, a holding in the Torchlight Fund No 1 LP and its management contract. Pyne Gould’s board has increased the capital available to Torchlight to “seek modest investments beyond the Torchlight fund.”
Pyne Gould shares have gained 6 percent this year and are currently trading at 36 cents.