GPG sells stake in ASX-listed Ridley Corp for A$54 mln in cash

Monday 6th May 2013

Guinness Peat Group, which expects to rebrand itself as UK threadmaker Coats later this year, has sold its 20 percent stake in ASX-listed agri-products maker Ridley Corp.

The London-headquartered firm expects to reap A$54 million in cash proceeds from the sale, adding the equivalent of some 34 million British pounds to the 129 million pounds it has generated from asset sales and capital returns this year. That would take total cash raised to 623 million pounds since GPG embarked on liquidating its portfolio in 2011.

Once GPG's assets have been sold, it will rebrand itself as Coats, its biggest holding, something likely to happen in the second half of this year.

Last month, the investment firm received a notice from the UK Pensions Regulator that the British watchdog will look at whether the Coats pension schemes should be supported by other entities in the group.

GPG had previously expected it would need to set aside 124 million British pounds to cover any shortfall in its pension scheme obligations. As at Dec. 31, the pension fund shortfall was valued at 281 million pounds, with low global interest rates eroding theoretical future returns relative to its expected liabilities.

Shares in GPG rose 0.9 percent to 55.5 cents today, while shares in Ridley jumped 11 percent to 87 Australian cents.

BusinessDesk.co.nz

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