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PGC
16/07/2012 17:09
GENERAL
REL: 1709 HRS Pyne Gould Corporation Limited
GENERAL: PGC: PGC Market Update
PGC Market Update
Pyne Gould Corporation Limited ("PGC") has further sold down some of its
investments in Heartland New Zealand Limited ("HNZ") and PGG Wrightson
Limited ("PGW").
The shares sold are:
15,384,615 of the ordinary shares it held in HNZ, for a total consideration
of $8,000,000; and
6,250,000 of the ordinary shares it held in PGW, for a total consideration of
$2,000,000.
Following these sales, PGC (through its wholly owned subsidiary Torchlight
Securities Limited) now holds 3.888% of the ordinary shares in HNZ and 0.894%
of the ordinary shares in PGW.
The proceeds from the sell down announced to the market on Friday 6 July 2012
and the proceeds from the sales referred to in this announcement are being
applied by PGC to repay its bank facilities with approximately $22 million,
the proceeds above this level are available for other investments.
The Managing Director of PGC will provide a statement on the investment
strategy for the PGC Group this week.
Point of Clarification
We wish to clarify that the proceeds of the HNZ and PGW shares sales are not
required to repay the outstanding balance of the interfund facility between
the Perpetual Cash Management Fund ("CMF") and Torchlight Fund No. 1 LP.
Torchlight is a closed end fund principally managed for some of the region's
major financial institutions. It has a portfolio spread over several thousand
real estate assets across the residential, rural and commercial sectors.
Torchlight holds assets directly and indirectly and as at last Friday evening
the loan balance was less than 7.5% on a loan to value ratio of Torchlight
Fund's net assets and comfortably covered by near term receivables.
Torchlight Fund has confirmed it will prepay the CMF interfund facility in
the requisite time.
PGC looks forward to making a broader statement at that point.
End CA:00224989 For:PGC Type:GENERAL Time:2012-07-16 17:09:26
