Kerr in Pyne Gould takeover bid
The 33c-a-share offer, with Baker Street Capital, values PGC at $71.5 million.
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Businessman George Kerr and US hedge fund Baker Street Capital have launched a full takeover offer for investment firm Pyne Gould Corporation.
The 33c-a-share all-cash bid, which values PGC at $71.5 million, is a 22% premium PGC’s closing share price on Friday.
Mr Kerr and Baker Street, who between them hold 33% of PGC, have formed a new fund – Australasian Equity Partners Fund No 1 (AEP) – to make the offer.
Their offer comes after PGC reported a $141 million loss for the year to June 2011.
The company has been through a significant restructure since raising more than $272 million in 2009 through a rights issue.
It recently offloaded its Marac finance business through the merger of two building societies that formed Heartland.
PGC is now effectively a wealth management and investment company with a property unit that holds a collection of impaired ex-Marac liabilities.
Mr Kerr said the company now had little in common with what PGC shareholders had long been associated with.
"Baker Street and I have therefore decided that, with the remaining PGC businesses focusing on growth rather than dividends, it is appropriate to give all shareholders the opportunity to sell their shares for cash now," Mr Kerr said in a letter to shareholders.
“With world sharemarkets again experiencing significant volatility, a number of PGC's largest shareholders have substantially reduced their shareholdings in recent weeks," he said.
"PGC is now a company more likely to re-invest its earnings in its assets with a patient seven years and beyond investment horizon."
Baker Street had been accumulating shares over the last few months.
AEP has secured commitments from other major shareholders with 4.53% to sell into the offer giving it a total of 37.53% of the voting rights.
Duncan Bridgeman
Mon, 10 Oct 2011
Mon, 10 Oct 2011
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Kerr in Pyne Gould takeover bid
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