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Pyne Gould sells Perpetual Trust for $11.9m

Pyne Gould, the South Island asset management firm controlled by George Kerr, has sold Perpetual Trust for $11.9 million to interests associated with London-based investor Andrew Barnes.

The sale is subject to Financial Market Authority and Overseas Investment Office approvals, and is made up of $6.2 million for the equity and shareholder advances, debt taken over of $3.7 million and an in specie property distribution of $2 million, Pyne Gould says in a statement.

The South Island company's shareholders could also reap more reward if Perpetual Trust meets certain corporate events.

"There was significant perceived pressure to exit on a fire sale basis," Mr Kerr says. "We have undertaken a patient process which has more than compensated for a decline in value of Perpetual Trust by the increase in wealth management."

Mr Barnes was also involved in the purchase of Pyne Gould's stake in van Eyk Research for $A13.3 million, which had taken over the Christchurch firm's Perpetual Asset Management and Perpetual Portfolio Management.

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

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

Pyne Gould expects to make an announcement on Real Estate Credit Ltd before the end of next month.

The shares were unchanged at 25 cents today.

(BusinessDesk)

Comments and questions
7

Hopefully the sale doesn't preclude the FMA and other agencies from fully investigating previous business activity at Perpetual and also at Torchlight.

Don't hold your breath - the FMA is staffed by ex NZX losers.

Does anyone know why Kerr lives in Sydney if he cares so much about NZ?

Maybe because Australia is a tax haven for New Zealand citizens ... seriously, no tax on overseas source income ever, for those first living in Australia after 2001.

Georgie boy must be scraping the bottom of the barrel with figures like these...

Well, PGC had to fire sell 40m PG Wrightson shares last year at 29c (now 48c) and 38m Heartland shares at between 50c to 52c (now 78c).

That's $16m less than what the shares would fetch today.

As ye sow, ye reap.

As Georgie boy took from others, so he giveth back.

2012 annual report said the intention was to give shareholders the sale proceeds in the form of a capital return - what happened to that idea?