Bosses consider purchase
Perpetual Group, a subsidiary of embattled Pyne Gould Corporation, might be bought by its senior management.
Perpetual services include financial planning and wealth management services, estate planning, trusts and wills services and corporate trustee services.
Its parent has been embroiled in a dispute with the financial markets watchdog over $28 million of lending from the conservative Perpetual Cash Management Fund to the Torchlight fund which is run by PGC's controlling shareholder, George Kerr, and invests in distressed assets.
BusinessDay asked PGC's chairman, Bryan Mogridge, yesterday if Perpetual was to be sold to its chief executive, Patrick Middleton, head of personal trust John McFetridge and head of advice Aaron Hing, and he said: "There's no decision made on that as yet. I think it's fair to say a lot of things are being considered about Perpetual and where it sits and how close and far away it is etc from PGC so all of those things are being considered but nothing firm has been landed upon yet. "
PGC said this week its managing director, Kerr, would make a statement this week about its future.
Two weeks ago BusinessDay obtained an email sent by Kerr indicating the company aimed to move its primary listing to Australia and divest subsidiary Perpetual.
In correspondence, Kerr said PGC had been prepared for structural separation since April 2.
"We have a release in a few days saying PGC is relisting on the ASX and focusing on its sole business Torchlight ... and divesting Perpetual group."
The emails indicated that Middleton would run the New Zealand unit while Kerr would remain in Australia.
PGC later clarified with a statement to the NZX that "no decision or agreement regarding or concerning the sale of Perpetual or moving the primary listing of PGC to the ASX has been made.
"A number of options have been under consideration for some time, however, no decision has yet been made in relation to any of these options. A further announcement will be made in due course if and when appropriate."
Perpetual is the main business left within PGC after Marac Finance became part of a larger lending group called Heartland.
- © Fairfax NZ News
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