10 Oct 2011

Takeover offer for PGC

7:16 pm on 10 October 2011

A $55 million takeover offer has been made for the investment and financial services firm, Pyne Gould Corporation, by two of its largest shareholders.

Australasian Equity Partners, which is an investment vehicle of Pyne Gould director George Kerr and US investment fund Baker Street, is offering 33 cents a share, a premium of 22% prior to the bid.

Pyne Gould's focus has shifted from lending to investing in distressed property assets and Mr Kerr says Pyne Gould needs to reinvest its earnings rather than pay dividends, as it did in the past.

Shares in Pyne Gould Corporation were trading at 32 cents, up 5 cents, when the market closed on Monday.

However, stockbroker Chris Lee told Checkpoint business he believes the bid is unlikely to succeed in getting Mr Kerr 100% of the company but at that price he may be able add a few percent to his current holding.