GPG hires broker to promote standalone Coats, looks for chairman

Chairman Rob Campbell does not plan to lead the new incarnation and a search has begun for his replacement.

Guinness Peat Group has hired a London-based brokerage to promote Coats as a standalone business and begun the search for a chairman for what will be its remaining asset.

GPG is exiting its portfolio of investments, apart from Coats, and will return capital to shareholders as it transforms into the thread-making business.

GPG chairman Rob Campbell does not plan to lead the company in its new incarnation and a search has begun for his replacement.

"The message we'll be looking to tell investors is to look at Coats as an independent business and not as something 'left behind' by GPG," Mr Campbell told BusinessDesk. "With the shift a shareholder will own a manufacturing and services business rather than a share in an investment business."

He says brokerage Peel Hunt has been hired to "ensure that investors have a clear understanding of the Coats business, its global presence and potential".

GPG shareholders will reap a cash return once Coats is fully operational and remaining investment assets Tower, Ridley Corp, CIC Australia, PrimeAg and Tandou have been sold.

"Now the investor will have much greater visibility to the risks and opportunities in Coats," Mr Campbell says. The process of getting this message across "will intensify as we return value from other assets to GPG shareholders and finalise the arrangements for Coats going forward".

GPG's NZX-listed shares rose 0.8 percent to 61 cents and have gained 2.5 percent this year.

(BusinessDesk)