Pyne Gould Corporation intends to distribute most of its shares in the new ''heartland'' bank to its shareholders following a strategic review of the Canterbury firm's operations.
The company is working on merging its finance company unit Marac with
Pyne Gould Corporation intends to distribute most of its shares in the new ''heartland'' bank to its shareholders following a strategic review of the Canterbury firm’s operations.
The company is working on merging its finance company unit Marac with Southern Cross Building Society and CBS Canterbury with an intention that the merged entity becomes a bank.
If shareholders approve the deal, PGC would hold a 72% shareholding in the merged entity – Building Society Holdings. The company said the distribution would help promote liquidity and prevent there being no single dominant shareholder.
A small stake would separately be placed by PGC to investors at or around the same time as the distribution.
PGC said it was in the process of determining the final split between the distribution and the placement.
Chairman Bruce Irvine said the review indicated that a distribution was the best option to “maximize value for PGC shareholders.”
“It puts ownership directly in the hands of our shareholders and investors and will promote liquidity and price discovery and maximise likelihood of NZX50 index inclusion for Building Society Holdings Limited.”
PGC’s largest shareholder is director George Kerr through Pyne Family Holdings which has about 14% following last year’s capital raising.
Managing director Jeff Greenslade said the strategic review was ongoing with PGC considering its options in respect of its other assets.
Further announcements would be made once PGC has completed its strategic review, he said.
Shareholders are to vote next week on the merger proposal.
PGC shares were up 1c at 42c in morning trading.
