Ann: GENERAL: PGC: PGC UPDATE

• Release Date: 28/11/12 13:48
• Summary: GENERAL: PGC: PGC UPDATE
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PGC
28/11/2012 11:48
GENERAL

REL: 1148 HRS Pyne Gould Corporation Limited

GENERAL: PGC: PGC UPDATE

Notice to NZX
28 November 2012

PGC UPDATE

PGC today advises that it is now in the final stage of its sales process for
Perpetual Group and expects an announcement of a conditional sale before
Christmas.
As previously announced it has sold Corporate Trust in a management buy -out.
 The wealth management business has attracted multiple proposals and PGC is
in final negotiations with the preferred syndicates.
Managing Director George Kerr is offshore this week closing details of this
process and will not be able to attend the AGM. "Unfortunately I am unable to
attend as we are working to a tight timeline to achieve a quality exit of
Perpetual by calendar year's end.  This is a major priority to preserve value
for shareholders," Mr Kerr said.

IMPACT OF SALE OF PERPETUAL GROUP
The completion of the Perpetual sale will see PGC with no further direct
operating businesses in NZ. The PGC balance sheet will then comprise the
Torchlight Investment Group and Torchlight Securities.

TORCHLIGHT INVESTMENT GROUP ("TIG")
1.   Torchlight Fund 1 LP
TIG owns 19.7% of the Fund - or $30m of capital at risk - and, at the date of
this update, the Fund is well positioned and tracking to deliver in excess of
20% over the life of the Fund.
This is made up of realised and unrealised gains to date.  The gains may not
be realisable until the underlying asset strategy is executed prior to the
end of fund life in late 2019.
2.   Torchlight Fund 2 LP
The distressed real estate from the bad book of Marac continues to turn to
cash and seed Torchlight Fund 2. The Fund's mandate is financial services and
real estate.  Since 2010 it has held a $2m commitment to litigation Funding.
The Fund has made a pragmatic decision to exit NZ exposure to indirect
litigation funding - which it has now executed at book value.  This does not
impact on any direct litigation funding that either the Funds, PGC or any
subsidiary may pursue in the near term.

TORCHLIGHT SECURITIES
Torchlight Securities holds 27%, or 42 million shares, of EPIC - worth $19m
at the last issue price of 45 cents.  EPIC owns 17% of Moto and around $10m
of cash and securities.
We have consistently argued the merits of Moto.  For long term investors, it
has powerful cash-flows - amounting to around UK75m a year - allowing for
steady debt amortisation and capital growth for shareholders.

The latest EPIC annual report shows a significant increase in NTA and we
continue to expect strong long term returns.

Media Contact:
David Lewis
021 976 119
End CA:00230337 For:PGC    Type:GENERAL    Time:2012-11-28 11:48:03