Published 15 February 2012
Pyne Gould Corp Ltd director George Kerr declared his takeover bid for the Christchurch-based listed company unconditional yesterday.
The takeover vehicle, Australasian Equity Partners Fund No 1 LP, increased its stake to 65.93% of Pyne Gould through the 37c/share offer made in November, and gave one last extension to the offer period, to Friday 30 March.
AEP told Pyne Gould shareholders in a letter yesterday: “Many of Pyne Gould’s largest shareholders have accepted the offer. Those shareholders appear to understand that Pyne Gould changed permanently in 2009 due to huge losses at Marac. The resultant $275 million capital-raising facilitated the rescue of the finance business and made possible the subsequent creation & spin-off of Heartland (Building Society Holdings Ltd). Heartland has recently regained its stable investment grade rating and we believe it is well positioned for achieving its vision of an NZ-controlled, NZ-managed & NZ-listed bank.
“Pyne Gould now faces the difficult & complex task of realising value from the remaining Pyne Gould assets. At the launch of this offer, we said the process of recovering asset value is likely to take both a lot more capital and a lot more time. Today, as we declare the offer totally unconditional, there is no change in our view & our strategy.
“Prior to 2009, Pyne Gould shareholders received dividends year after year. In the later years these dividends were paid based on, in hindsight, illusory profits. Therefore, while our message is not popular, it does, however, have the advantage of being realistic. Given the nature of the remaining assets, shareholders should not have unrealistic expectations of forecasts for financial results in the near term. Our expectation is that Pyne Gould is very unlikely to pay a dividend for many years.”
19 Janbuary 2012: Kerr passes Pyne Gould takeover mark, says more capital will be needed
23 December 2011: Kerr up to 47% of Pyne Gould, extends offer again
1 December 2011: Kerr sees Europe crisis opportunities for post-takeover Pyne Gould
25 November 2011: Kerr extends Pyne Gould offer period
22 November 2011: Extra 4c changes everything at Pyne Gould
18 November 2011: Kerr lifts PGC offer as appraisal of original bid released
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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.