Pyne Gould completes capital raising

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Pyne Gould Corp, the finance company with ambitions to become a bank and asset manager, raised $5.9 million through its share purchase plan, completing a $273 million capital raising.

Some 954 shareholders took up the offer to subscribe for up to $5,000 of new shares, the company said in a statement. The shares are being issued at 43 cents apiece.

The shares fell 2.2 percent to 44 cents today, valuing the company at $342 million.

The company is overhauling its capital structure, taking bad loans off the books of its Marac unit, which will be the vehicle for seeking a banking licence, and passing them over to its Perpetual asset management arm.

The parent will bear the cost of the transaction, which effectively halves the value of the loans by the time Perpetual takes them over.

The Reserve Bank requires banks to have an investment grade rating of BBB- or better and Marac's rating is currently BB+.

Under the shuffle, Pyne Gould took $175 million of impaired loans from Marac's books, taking an $85 million charge, with the remainder going into the Perpetual unit.  

-BUSINESSWIRE