Perpetual Trust sale to net $22m for Pyne Gould
Pyne Gould Corporation says it will receive another $22 million from the sale of subsidiary Perpetual Trust by the end of the year.
That announcement was made today after Perpetual Trust and New Zealand Guardian Trust announced they would be merging.
PGC, controlled by businessman George Kerr, sold Perpetual Trust last year to interests associated with investment banker Andrew Barnes. Barnes is instrumental in the merger of Perpetual and Guardian.
"Following discussions with PTL regarding that company's likely participation in future industry consolidation, the parties have agreed this further sale consideration will be fixed at $22 million," the company said today.
"Whilst precise timing is not possible to determine, PGC anticipates it will receive payment by approximately year's end.
PGC was once a financial force in Canterbury but almost collapsed in 2009 with the weight of bad property loans.
Kerr, a descendant of one of the founding families, was the mover and shaker who raised enough capital to save it. He later split and sold most of its businesses, except for the Torchlight fund management business, which he founded in 2009.
Kerr is taking that company to Guernsey, rebranding it as a real estate investor and hoping to list the company on the London Stock Exchange.
A couple of years ago PGC said it would consider returning the proceeds of the sale of Perpetual to shareholders.
That has taken the form of a share buyback, a way of reducing the number of small shareholders in the company. There are about 2000.
PGC said in mid-January it had completed the sale of its last operating asset in New Zealand, Perpetual Trust, to Barnes.
PGC would be paid a further consideration under certain events - that would allow it to benefit by up to 40 per cent of any value which Barnes was able to create from Perpetual Trust, it said.