13 Dec 2010

GPG board says strategic review of the company complex

7:13 am on 13 December 2010

The new head of Guinness Peat Group says a strategic review of the company is complex and the board is in no rush to reach a decision on how it will return value to shareholders.

Chairman Mark Johnson, who became an independent director in September, has replaced GPG founder Sir Ron Brierley, who will remain on the board as a non-executive director.

Mr Johnson, 70, says investors will have to wait until the company's half year results in February, to get an update on the progress of the strategic review.

The former Australian investment banker says GPG is undervalued, but the process to restore investor confidence in the company will take some time, as the new board is still getting to grips with the complexity of the problems.

He says it's difficult to know when the review will be complete.

Mr Johnson says the board is still mulling options for its New Zealand assets.

He says he may bring on new directors to ensure GPG's board has the right skills to take the company forward.

GPG shares remained unchanged at 70 cents.