PGC
08/05/2015 13:49
GENERAL
PRICE SENSITIVE
REL: 1349 HRS Pyne Gould Corporation Limited
GENERAL: PGC: PGC and Bath Street Capital
8 May 2015
PGC and Bath Street Capital
Pyne Gould Corporation ("PGC") today confirmed that it has placed a demand
for payment of further consideration due to PGC from its sale of Perpetual
Trust Limited ("PTL") with Bath Street Capital ("BSC").
In addition to the consideration received by PGC at the completion of the PTL
sale in January 2014 (as previously announced), the sale agreement provided
for further consideration payable to PGC on the occurrence of certain
corporate events. There was no floor and no cap on this further amount.
In April 2014, PGC and interests associated with BCS agreed a variation
providing that in consideration for a payment to PGC of $22.2m the further
consideration obligation to PGC under the previous arrangements would be
extinguished.
PGC's view, based on the agreement, is that the payment is due. As it has
not yet been received, PGC has now formally requested payment of the $22.2m
(plus interest and costs) from BSC and will pursue that.
PGC expects to fully recover the $22.2m. However, for the purposes of the 31
December 2015 half year accounts, it was revalued to $19.3m by independent
valuer Grant Thornton. With Grant Thornton's recent appointment to be PGC's
auditors, PGC will appoint a new independent valuer to consider the matter
should the amount still be outstanding at 30 June 2015.
For more information, please contact: David Lewis +64 21 976 119
End CA:00264124 For:PGC Type:GENERAL Time:2015-05-08 13:49:14
