Pyne Gould clarifies share sale, plans for Perpetual
PGC plans to grow its wealth management business but much depends on PGG Wrightson takeover.
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Pyne Gould Corporation has provided more details of the final stages of its restructure, which began when it spun of its finance arm Marac into the new “heartland” bank.
The Christchurch company this morning updated shareholders on plans to distribute its 71% shareholding in Building Society Holdings as well as the future of its wealth management division.
PGC had earlier said it would distribute most of its BSH shares to shareholders along with a placement to institutions. However, if a partial takeover for PGG Wrightson by Chinese interests was successful, PGC would not need to make a placement, it said.
PGC has signed a lock up agreement to sell its 18.3% holding in PGG Wrightson with Agria (Singapore) and New Hope Group (China).
If the offer succeeds PGC will use the proceeds to repay $27 million of loan notes issued to Marac, now part of BHS. PGC had previously intended to fund the repayment of the loan notes through the placement.
PGC will also provide $5 million of working capital for PGC’s wealth management business, which it intends to grow, rather than sell as had been speculated.
The wealth business will consist of two parts – Perpetual Group, a 135-year-old business with $587 million funds under management, and Torchlight Group, focused on asset management in Australia and New Zealand.
PGC noted that the partial offer for PGG Wrightson (PGW) could be subject to scaling, which might result in PGC continuing to own some PGW shares following the close of the offer.
The company noted that PGW had received an approach from another party interested in making a full takeover.
PGC said it had committed to sell its shares to Agria, should Agria's offer become unconditional.
"PGC is not in a position to comment on the likelihood of any competing offer eventuating or becoming unconditional."
Meanwhile, the company announced further board changes with Bryan Mogridge to take over as chairman from Bruce Irvine once the shares in BSH were distributed and the PGW stake was sold.
Jeff Greenslade will resign as chief executive to focus on his role as managing director of BSH.
The PGC board will then consist of Mr Mogridge, John Duncan, Torchlight chairman George Kerr and one other independent director to be appointed.
Duncan Bridgeman
Wed, 09 Feb 2011
Wed, 09 Feb 2011
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Pyne Gould clarifies share sale, plans for Perpetual
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