PGC executives get share bonus
Financial services company Pyne Gould Corp will issue 4.4 million new shares to key executives under a share plan for key executives following some major restructuring at the Christchurch firm.
Financial services company Pyne Gould Corp will issue 4.4 million new shares to key executives under a share plan for key executives following some major restructuring at the Christchurch firm.
PGC, which is merging its Marac finance unit with CBS Canterbury and Southern Cross Building Society, said the new shares will be issued at 36.74 cents.
PGC shares last traded at 36c.
The share plan comes as shares of the merged entity, Building Society Holdings (BSH), are to begin trading on the NZX on January 31. PGC will hold a 72% stake in BSH but plans to distribute most of its stake to shareholders and investors once the merger is completed.
Under the share plan PGC will immediately issue half the 4.4 million shares to “eligible” employees, PGC said in a statement.
The balance will be placed into escrow until October 2011 to be released in three tranches over three months, provided the employee remains employed by BSH at that date.
Three PGC senior executives are joining the new entity, which plans to become a registered bank. They include chief executive Jeff Greenslade, chief financial officer Sean Kam and general counsel Michael Jonas.
BSH Chairman Bruce Irvine said the share plan provides senior management an incentive be part of BSH’s future development and growth.
"The plan closely aligns the interests of senior management with those of PGC and its shareholders."
The scheme will have impact on net profit after tax in financial year 2011 of $1.7 million ($1.4 million for PGC and $0.3m for BSH) and $0.1 million in 2012 for
BSH.
PGC recently agreed to sell its 18.3% stake in PGG Wrightson through a pre-bid agreement with Chinese firm Agria Corp and New Hope Holdings.
This leaves PGC with one remaining business unit, Perpetual Group, which is also tipped to be sold.
Duncan Bridgeman
Tue, 25 Jan 2011
Tue, 25 Jan 2011
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PGC executives get share bonus
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