PGC sells re­main­ing Heart­land shares

South Waikato News - - RURAL DELIVERY -

Pyne Gould Cor­po­ra­tion has sold out of the lend­ing group Heart­land which it formed 18 months ago.

PGC said this morn­ing it had sold its re­main­ing in­vest­ment, 15.2 mil­lion shares in Heart­land (HNZ), for $7.9 mil­lion.

‘‘Fol­low­ing this trade, PGC (through its wholly owned sub­sidiary Torch­light Se­cu­ri­ties) no longer holds any shares in HNZ,’’ the com­pany told NZX. The pro­ceeds of this sale will be used for fur­ther in­vest­ment.

The share prices of both PGC and Heart­land were un­moved by the news.

The for­ma­tion of Heart­land was the re­sult of the huge re­cap­i­tal­i­sa­tion of PGC in late 2009 to save it and its sub­sidiary Marac Fi­nance from col­lapse.

A year later Marac com­bined with two build­ing so­ci­eties to form Heart­land, and a few months af­ter that the fi­nance arm of PGG Wright­son was in­cluded.

PGC share­hold­ers were ap­por­tioned PGC’s shares in Heart­land mid last year but two months later PGC bought back into Heart­land – at a pre­mium to the Heart­land share price at the time – as part of Heart­land’s cap­i­tal rais­ing to buy PGW Fi­nance.

PGC in­creased its stake in Heart­land in Fe­bru­ary to just over 12 per cent. In the past three weeks it has been sell­ing down its stake and to­day com­pleted that.

It is em­broiled in a dis­pute with the Fi­nan­cial Mar­kets Author­ity over a $28 mil­lion loan from PGC’s con­ser­va­tive Per­pet­ual Cash Man­age­ment Fund to the PGC owner Ge­orge Kerr-man­aged Torch­light fund. PGC has in­di­cated an op­tion it is con­sid­er­ing is to split off the Torch­light busi­ness and list that in Aus­tralia and its other Per­pet­ual busi­ness may be bought by its se­nior man­age­ment.

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