Guinness Peat Group chairman Ron Brierley says the company's current model no longer works for it.GPG was incorporated in Britain, where corporate bureaucracy was "simply spiralling out of control", Sir Ron said in a statement after the company'
Guinness Peat Group chairman Ron Brierley says the company's current model no longer works for it.
GPG was incorporated in Britain, where corporate bureaucracy was "simply spiralling out of control", Sir Ron said in a statement after the company's annual meeting in London overnight Friday (NZT). "That is a model which no longer works for GPG but formulating structural changes where what shareholders already own is not eaten up in excessive taxes and other charges is a very complex equation."
In the company's annual report, Sir Ron had said it was planned to have a process in place to return value to shareholders before the annual meeting.
In his statement after the meeting, Sir Ron said: "That part is literally true insofar as we do have a process in place and which is no mere formality." He pointed out that GPG shares were listed on three stock exchanges, and the company had direct investments and businesses in four countries -- excluding its major investment in Coats operations.
Most shareholders were in New Zealand, with significant institutional holders also in Britain, Australia, Asia and the United States.
Despite the difficulties, GPG was making progress, Sir Ron said.
"In terms of GPG's 20-year history, a few more weeks, or months, if necessary, is not critical.
"Much better to reach the right conclusion rather than anything more precipitate but recognising that, inescapably, substantial changes cannot be indefinitely postponed."
In the meantime, GPG in its present form, despite two bad years behind it, remained in a healthy position with the current share price well supported by net assets of 56p ($NZ1.15), which the company believed to be conservatively stated.
