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- Release Date: 03/01/13 11:01
- Summary: ASSET: PGC: Proposed divestment of Perpetual
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PGC
03/01/2013 09:01
ASSET
REL: 0901 HRS Pyne Gould Corporation Limited
ASSET: PGC: Proposed divestment of Perpetual
NZX ANNOUNCEMENT - FOR IMMEDIATE RELEASE
3 January 2013
Proposed divestment of Perpetual
Pyne Gould Corporation ("PGC") has reached a conditional agreement for the
sale of Perpetual Portfolio Management Limited together with Perpetual Asset
Management Limited and Perpetual Trust Limited ("Perpetual").
In addition, PGC has also reached a conditional agreement for the sale of its
shareholding in van Eyk Research Pty Limited ("van Eyk"), an Australian
financial research and management firm.
Under the agreements, Perpetual will first be acquired by van Eyk to create a
Trans Tasman wealth management business with AUD25m + of revenue. Secondly,
PGC's share holding in van Eyk will be sold to interests led by London-based
wealth management investor Andrew Barnes, who previously floated the
Australian wealth management businesses of TOWER Limited (Australian Wealth
Management Limited) on the ASX.
PGC Managing Director George Kerr said: "The deal is positive for all
parties. The sale gives certainty and security to Perpetual, and links it to
significant resources in Australia. As has been previously outlined, PGC's
focus is on Torchlight and its assets in Australia and the United Kingdom.
"Andrew Barnes has an excellent track record in terms of creating value for
companies and shareholders. He has been based in London for a number of
years. Previously he was Managing Director of Australian Wealth Management
Limited, a major listed Australian wealth management business with a
statutory trust company (80,000 wills and USD1 billion trust assets), which
he led through an IPO."
The divestments are conditional on regulatory support, the purchaser
completing its due diligence investigation of van Eyk, and the PGC Board
approving the transaction. Full details of the transaction will be released
following completion of due diligence and Board approval, but in the meantime
they remain subject to mutual obligations of confidentiality between the
parties.
END OF RESTRUCTURING
The deal, on completion, will mark the end of the restructuring of PGC. "In
2009 PGC was a leveraged investment company on the verge of bankruptcy. Each
operating unit required new capital, new strategy and new management. Today
each has a sustainable future -Marac was the genesis of Heartland Bank; PGW
was recapitalised and sold; Perpetual will become part of a pure Trans
-Tasman wealth management business with a clear growth agenda and a highly
experienced leadership team.
PGC will now focus on its core investment and asset management business -
which is Torchlight." Mr Kerr said.
Media contact: David Lewis 021-976 119
End CA:00231762 For:PGC Type:ASSET Time:2013-01-03 09:01:04
