Brierley sells $2.87 mln of GPG shares half-way through wind-down

Thursday 1st November 2012

Veteran corporate raider Ron Brierley sold $2.87 million of shares in Guinness Peat Group as the investment company hits the half-way point in liquidating its portfolio.

Brierley, now based in Sydney, sold some 1.57 million shares at 58 cents apiece on Oct. 26 and 3.43 million shares at 57 cents on Oct. 29, leaving him with 46.88 million shares, or 2.89 percent of GPG, according to a regulatory notice. At today's trading price of 57 cents, that's worth $26.72 million.

The sales came after GPG announced it was half-way through selling its assets, and increased its share buyback target to 70 million pounds from 10 million pounds.

The investment company will rename itself Coats "at the point when GPG shareholders' investment is predominantly represented" by the UK threadmaker's business. That's expected to happen in the second half of next year.

Brierley clung to his GPG seat at this year's annual meeting in Auckland, with just 12 million votes separating the 50.75 percent for and 49.25 percent against his re-election as a non-executive director of the company he took over in 1990.

He and his team at GPG were ousted last year in a shareholder revolt over plans to split up the investment company.

Since losing control of GPG's board, Brierley has set up another diversified investment vehicle, ASX-listed Mercantile Investments. He seized control of Mercantile, then called India Equities Fund, in January when shareholders agreed to a deal giving him 54 percent of the company and its chair in return for his stakes in Copper Strike, Trinity Group, ING Community Living Group, Australian Pharmaceutical Industries and Trojan Equity.

He subsequently brought in his old comrades Ron Langley and Gary Weiss via an A$2 million placement.

Last year, the 74-year-old investor told the Sydney Morning Herald he doesn't plan to quit the corporate world any time soon, though the new fund won't be anything "too big" or "too ambitious."

Brierley has also reconnected with old colleagues in New Zealand where he emerged as a co-investor with Selwyn Cushing, a former Brierley Investment chairman, in Wellington's struggling upscale department store and property owner Kirkcaldie & Stains.

BusinessDesk.co.nz

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