7 Jul 2012

PGC raises $15m by selling down stakes

11:33 am on 7 July 2012

Pyne Gould Corporation has raised more than $15 million by selling part of its stakes in both Heartland and PGG Wrightson.

Pyne Gould declined to comment on reasons for the sale on Friday.

On Thursday, one of its subsidiaries, Torchlight Fund, agreed to repay a $13 million loan to another Pyne Gould company, Perpetual Trust.

This was after it lost a bid to keep secret the details of the transaction, which is being investigated by a regulator, the Financial Markets Authority (FMA).

Also on Thursday, when Fairfax Media reported that PGC was planning to sell Perpetual Trust as well as moving its main listing to the ASX, trading in Pyne Gould was suspended by the NZX.

Pyne Gould said at the time that the information came from a leaked email and it had not made a decision on the sale of Perpetual nor on moving the primary listing of PGC to the ASX.

Company officials say a number of options have been under consideration for some time and an announcement will be made in due course if, and when, appropriate.