PGC may be set to up stakes

Last updated 05:00 29/11/2012

Relevant offers

National business

Surge in 10-year passport applications expected Westfield malls in Lower Hutt and Hamilton to be rebranded after sale Nutella rejects personalised jar for five-year-old girl named Isis Seven condoms, 21 orgasms? A German court has ruled no The Facts of Life: The changing shape of Kiwis Health drink SOS Hydration seeks to raise $2.3m in crowdfunding campaign AFT Pharmaceuticals NZX and ASX listing to fund growth Stalled rebuild projects threaten upper South Island tourist industry Christchurch woman breaks tooth biting on 'screw inside Snickers bar' Speculation about Islington venison works decision premature - Silver Fern Farms

Pyne Gould Corporation looks set to quit New Zealand next year after the company said it was close to selling Perpetual Group, its only remaining operating business in the country.

At a sparsely attended annual meeting in Auckland yesterday, chairman Bryan Mogridge said the board was "seriously considering the domicile of the company".

Reading from a statement provided to the NZX earlier, he said the sale of Perpetual would leave PGC with two main assets, Torchlight Investment Group and Torchlight Securities.

Those were long-term patient investments with sufficient cashflow to cover running costs, he said, but "PGC is unlikely to ever pay a dividend".

Mogridge said Torchlight Investment Group had $30 million of capital "at risk" in Torchlight Fund No 1, which was on track to deliver returns of 20 per cent, but gains would not be realised until the fund was wound up in 2019.

The sale of Perpetual was in its final stages and a conditional deal was expected to be announced before Christmas.

Managing director and controlling shareholder George Kerr did not attend the meeting, as he was working on the Perpetual deal.

The company also announced its exit from New Zealand litigation funding "at book value".

Litigation funding had been touted by PGC as an opportunity "to protect and create value for shareholders" by funding lawsuits against those involved in finance company collapses, but attracted controversy because of its potential conflict with PGC's ownership of Perpetual Trust, trustee in many finance company failures.

Ad Feedback


Special offers

Featured Promotions

Sponsored Content