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- Release Date: 08/04/13 17:34
- Summary: ASSET: PGC: Torchlight Fund LP 2 exits van Eyk
- Price Sensitive: No
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PGC
08/04/2013 15:34
ASSET
REL: 1534 HRS Pyne Gould Corporation Limited
ASSET: PGC: Torchlight Fund LP 2 exits van Eyk
?NZX ANNOUNCEMENT - FOR IMMEDIATE RELEASE
8 April 2013
Torchlight Fund LP 2 exits van Eyk
Torchlight Investment Group ("TIG") announced today that its Torchlight Fund
LP 2 has sold its cornerstone shareholding in van Eyk Research Pty Limited
("van Eyk").
TIG is a 100% owned subsidiary of Pyne Gould Corporation ("PGC"). Torchlight
Fund LP 2 is also a 100% subsidiary.
The sale is to ASX- listed Merrick Capital (MEF), an entity associated to
London-based wealth management investor Andrew Barnes. The price is AU$13.3m
in cash.
In addition and immediately prior to the transaction, Torchlight Fund LP 2
was repaid the AU$7.2m advance made to van Eyk last year.
Further, PGC itself separately retains an AU$5.6m convertible note holding in
van Eyk. The convertible note, together with AU$2.4m cash, formed the AU$8m
consideration paid to PGC for the sale to van Eyk of Perpetual Asset
Management Limited and Perpetual Portfolio Management Limited announced on 22
March 2013.
PGC Managing Director George Kerr said the 2010 investment by Torchlight Fund
LP 2 in van Eyk delivered shareholder value to PGC in two ways.
"Firstly, we saw a lift in van Eyk's stand alone value and growth rate -
stemming from gross margin expansion and lower overheads leading to higher
profit and operating leverage. Secondly, van Eyk was always a compelling
owner in Sydney for Perpetual's wealth management business. Van Eyk has
around five times the funds under management of Perpetual, and the merged
businesses will enjoy very large synergy benefits from quality, scale and
eliminating duplication."
Mr Kerr said he expects to be able very shortly to announce the completion of
the sale of the Perpetual Trust.
Contact: ?David Lewis 021-976 119
End CA:00234979 For:PGC Type:ASSET Time:2013-04-08 15:34:35
