Pyne Gould appoints new directors as Kerr exerts control

Wednesday 15th February 2012 2 Comments

Pyne Gould Corp, which has effectively been taken over by major shareholders George Kerr and Baker Street Capital, has appointed two new directors, Michael Tinkler and Russell Naylor to its board.

Tinkler is a commercial lawyer and is currently acting as the PGC general counsel. He was previously a commercial real estate partner at law firm Buddle Findlay. Naylor is the principal of Naylor Partners, a boutique Sydney-based corporate advisory firm. He is also an executive director and investment committee member of Torchlight and the ASX listed International Education Fund.

Kerr and Baker Street’s Australasian Equity Partners No. 1 LP yesterday extended its takeover offer by two weeks and said its interest in the company tops 65 percent. The offer now closes on March 30 and won’t be extended again, Kerr said in a statement to the NZX. Australasian Equity is offering 37 cents a share for the company.

Shares of Pyne Gould last traded at 36 cents, valuing the company at $78 million.

Kerr argues the company’s profile has changed since the divestment of its Marac Finance arm, and the remaining assets will take longer to realise. Dividends are unlikely any time soon.

“When we know the final outcome of the Australasian Equity Partners Fund No 1 LP takeover we will appoint a further independent director to replace Bruce Irvine,” said chairman Bryan Mogridge. “We have suitable candidates in mind but we need to understand the final percentage shareholding AEP will achieve and whether or not PGC remains listed on the NZSX.”

It is anticipated that Naylor will chair the audit committee.

(BusinessDesk)

BusinessDesk.co.nz

Comments from our readers

On 16 February 2012 at 11:53 am Bill Joyce said:

This Company has been a disaster since Day 1 when shares were issued at theoretical value well in excess of actual value. Board Member(s) and liquidators have been the only beneficiaries and no doubt it has all been legal. Good to see that "Jobs for the Boys" is still alive and well.

On 16 February 2012 at 1:05 pm Bill Joyce said: