Pyne Gould, Bath Street agree to drop High Court claims over Perpetual Trust sale

Monday 26th September 2016

Pyne Gould Corp and Bath Street Capital won't go to court over what's owed in relation to Pyne Gould's sale of Perpetual Trust.

In September last year, Guernsey-based Pyne Gould said it was seeking damages of not less than $22 million, with interest and costs, from Bath Street. It said the money was owed from the sale of Perpetual, and it "represents unpaid consideration in respect of carrying rights pursuant to the share sale agreement as subsequently varied."

Bath Street filed a counter-claim in November 2015, saying the protracted fight had slowed progress for Bath Street's stock exchange listing and generated substantial costs for the firm. It didn't quantify the damages it was seeking but said it was more than Pyne Gould's $22 million.

"Bath Street Capital is currently proceeding towards a float of Complectus, which owns Perpetual Trust," Pyne Gould said in a statement. "The agreement means court action has been withdrawn, and the parties are in the process of finalising the terms of a settlement. Once those terms have been finalised, a further announcement will be made."

The transaction attracted the attention of the Financial Markets Authority after Pyne Gould recognised the $22 million gain in its 2014 annual earnings on the sale of Perpetual, despite the payment not being triggered. Pyne Gould later said it would reclassify the amount as an "available for sale financial asset" in its first-half accounts, and its 2015 annual statements showed a one-time gain of 11.3 million British pounds on the sale of discontinued operations in 2014.

Last month, Perpetual Guardian, which trades as Complectus, said it plans to list its shares publicly on the NZX and ASX by the end of 2016 in a $150 million initial public offering.

BusinessDesk.co.nz

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