22 Dec 2009

SCF sells entire stake in Pyne Gould

3:54 pm on 22 December 2009

South Canterbury Finance (SCF) has sold its entire stake in Pyne Gould Corporation. The sale, at 50 cents a share, netted it more than $14 million.

SCF had a 4.5% stake in in the rural services firm, or 29.5 million shares.

Chief executive Nigel Gormack says the sale, which made a small profit, is part of a programme to sell off assets not related to the company's main lending business.

He says the money raised will be used to shore up the balance sheet by providing extra liquidity.

South Canterbury Finance will carry out a capital-raising early next year, and is considering floating on the sharemarket.