14 Nov 2013

PGC plans to skip to tax haven and list in UK

9:01 pm on 14 November 2013

Pyne Gould is planning to relocate to the tax haven of Guernsey and to list on the London Stock Exchange, despite nearly all of its shareholders living in New Zealand.

The chairman, Bryan Mogridge, says these plans are a natural path forward for Pyne Gould, most of whose assets are now in Australia and Britain.

Mr Mogridge says the company's main 76.3% shareholder is controlled by South Island businessman George Kerr and associates, and it intends to vote in favour of the move to the Channel island of Guernsey.

Most companies in Guernsey don't pay tax.

Mr Mogridge says a London listing will increase Pyne Gould's profile with potential new investors, which would broaden the shareholder base.

That London listing will increase the company's ability to raise capital and is a more appropriate market for its shares, both geographically and in terms of sophistication.

Mr Mogridge says the New Zealand market isn't recognising the success of Pyne Gould's strategy in its share price.

Pyne Gould reported a $45 million profit this year compared with a $48 million loss last year and a $141 million loss the year before that.

At Wednesday's closing price of 43 cents, the market valued Pyne Gould at just over $93 million or £48 million.