Pyne Gould's Kerr finds buyer for Perpetual units
PGC is also selling its interest in the buyer, the Australian research and management company Van Eyk.
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Pyne Gould Corporation (NZX: PGC) managing director George Kerr has found a buyer for its Perpetual wealth management businesses and will throw in the firm's stake in Australian research and management firm van Eyk Research.
Under the terms of the deal, van Eyk will acquire Perpetual Portfolio Management, Perpetual Asset Management and Perpetual Trust to create a wealth manager with A$25 million-plus in revenue.
Pyne Gould will then sell its 38.2% stake in van Eyk to interests led by London-based wealth management investor Andrew Barnes, the company said in a statement. Barnes was previously managing director of Australian Wealth Management, which was floated on the ASX.
"Perpetual will become part of a pure transtasman wealth management business with a clear growth agenda and a highly experienced leadership team," Mr Kerr says. "PGC will now focus on its core investment and asset management business, which is Torchlight."
Van Eyk manages funds of $1.2 billion and provides research and data tom some 8,000 financial planners, according to PGC's annual report.
It bought the van Eyk stake in 2010 for $A1.6 million and has provided it three loans since the acquisition, the latest being an $A7.2 million advance on July 25.
The divestments are conditional on regulatory approval, Mr Barnes completing due diligence of van Eyk and PGC board approval.
Shares in Pyne Gould last traded at 26c, a 30% discount to the 37c a share price Mr Kerr paid to take control via his Australasian Equity Partners No 1 LP vehicle.
PGC has previously signalled it plans to quit the local bourse and shift its domicile to either Australia or London once it completed the Perpetual sale.
BusinessDesk
Paul McBeth
Wed, 11 Jul 2018
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Pyne Gould's Kerr finds buyer for Perpetual units
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