Rangatira, the Wellington-based investment group, named Phil Veal as chief executive and told shareholders magnetic resonance imaging firm Magritek is probably performing well enough to trigger a further investment.
Veal, whose roles include chairman of Kea, the networking company for New Zealanders set up by Warehouse Group founder Stephen Tindall, will start with Rangatira in September. He replaces Ian Frame, who stepped down in June after an 11-year tenure.
Veal takes over an investment company with some $180 million of assets ranging from Polynesian Spa to the Rainbow's End Theme Park and Tuatara Brewing Co. The company took a 12 percent stake in Magritek, which makes magnetic resonance imaging and nuclear magnetic resonance devices, a year ago. At its annual meeting in Wellington today chairman David Pilkington said the business is on track to meet certain milestones including a sales target that would trigger Rangatira lifting its holding to 18 percent.
Magritek's technology itself not only works very well, but its competitors are struggling to emulate it," Pilkington told BusinessDesk after the meeting. Rangatira had split up its investment because Magritek was effectively a start-up and the investment company wanted to ensure it would meet its targets.
He told the meeting that Rangatira's portfolio of listed investments is currently under review. Modest gains from shares had been affected by its weighting to the Australian market and the effect of a high kiwi dollar.
Shareholders at the meeting approved all resolutions including the company's plan to buy back up to 600,000 of its class A shares, amounting to 9.7 percent of those on issue, and 600,000, or about 5.2 percent, of the B shares, which are held by charitable trusts including Outward Bound New Zealand and various JR McKenzie trusts.
The Class A shares last traded at $8.60 on the Unlisted platform and the Class B shares were at $8.50.