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.
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Comments and questions6
George is like a see saw - up and down and in and out like a yoyo
Not sure if PGC ( controlled by George Kerr and cronies ) increasing their stake in Heartland of Newmarket is a good thing for the other shareholders and for Heartlands ability to get a banking license - time will tell
Gosh those CBS shareholders who Graham Kennedy and Gary Leech coaxed into merging with Marac ( to form Heartland ) must be absolutely spewing now. They have faced huge value destruction and converted from a first rate building society to a second rate finance company with huge ambitions and George Kerr as the major shareholder.
There must be some really angry investors in Ashburton and Christchurch
Any hopes of turning this second tier finance operation into a bank are fading fast - and so they should.
Hmm - why would they sell shares in a good company at the bottom of a cycle and buy more shares in a c*%p company with an uncertain future. Suspect this is half the story only, like most of the dealings in this stable in the last five years since Mr Kerr's arrival. I think it is probably wise to keep your distance from the entire stable (or perhaps best described rather than a stable as a series of run down leaky implement sheds).
Surely the Reserve Bank is not contemplating a banking license for Heartland until they clean up their toxic Marac loans and Heartland shows proof of a long term viable profitable business - which isn't the case at the moment.
The profitability of the company is very average considering half the book is higher yielding finance company business and half is the remnants of CBS and Southern Cross Building Society.
Isn't it ironic after a couple of years that the stronger parners in the Heartland merger was CBS and yet the CBS directors led their shareholders into this weak position. It should have been a reverse takeover by CBS using their 120 year history and strong governance and management.
There will be tears in Ashburton these days after having CBS and Loan and Building Society based there only a few years ago.
people will steer clear of heartland until mr kerr has gone and that means no banking registration.
don't be surprised if an overseas bank gains control of heartland.