Published 1 December 2011
Pyne Gould Corp Ltd director George Kerr gave shareholders a glimpse today of the company’s future if he succeeds with his takeover bid: taking advantage of the crisis unfolding in Europe.
Mr Kerr is the director of Australasian Equity Partners (GP) No 1 Ltd, general partner of the bid vehicle, Australasian Equity Partners Fund No 1 LP. He told Pyne Gould shareholders in a letter today that, if the bid succeeded, Pyne Gould would start 2012 “pursuing a value-focused strategy rather than a dividend-focused strategy.
“Australasian Equity Partners (AEP) believes that this value-focused strategy could be enhanced by the potential for the crisis unfolding in Europe to present medium- to long-term investment opportunities. AEP believes that, whilst these opportunities are likely to require Pyne Gould to seek to raise capital from shareholders, with careful management AEP expects that shareholders should be rewarded over the longer term for the additional capital they may choose to put at risk.”
AEP originally offered 33c/share, increased it to 37c on 17 November then extended the offer by 7 days to Friday 16 December. Today AEP extended the offer another week, to Friday 23 December. The time for declaring the offer unconditional has also been extended by a week, to Friday 6 January.
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.