Advertising next step for Gould

By PAUL PANCKHURST


Fresh from pocketing $13 million from the Vertex share sale, dealmaker George Gould's investment company is closing in on its next acquisitions.

Already a cornerstone shareholder in mortgage-broking business Mike Pero and textile company Pod, Gould Holdings' planned next move is into the advertising industry.

The Christchurch investment company is close to making deals to buy one or more billboard advertising companies.

Gould would not comment on the plans yesterday, but Christchurch newspaper the Press last month outed billboard company Waho as one of the targets.

The Business Herald has been told Gould Holdings is also close to buying a second billboard company.

On Gould's past form, the acquisitions could be a precursor to a sharemarket float.

On Monday, Gould Holdings sold a 19.9 per cent stake in Auckland plastics company Vertex for $13 million - a profit of about $3.8 million for an 18-month investment.

The investment company bought in after Vertex shares plunged because of a profit downgrade within two months of its listing on NZX.

Interests connected with Gould own about 60 per cent of Gould Holdings.

The Rutherford family, of north Canterbury, own about a third and accountant Kevin Arscott holds about 7 per cent.

The company's profile lifted with the purchase in March of 90 per cent of Mike Pero, a company later floated on NZX with Gould Holdings retaining a 54 per cent stake.

Gould Holdings kicked off in 2002, with Gould putting his shareholding in Designer Textiles - the listed company now called Pod - into the company and other investors chipping in capital.

The company retains 24.6 per cent of Pod, a stake yesterday worth $12.3 million.

The Mike Pero stake was yesterday worth $10.9 million.

Gould said the company had "less than $5 million" invested in a number of other companies.

The sale of the Vertex stake frees up a substantial wad of cash.

"That goes into the bank," said Gould, "because we don't have any debt."

Asked about the company's plans, he said it was looking at a number of possible acquisitions or investments.

"We're always looking at a range of companies - we've got quite a few in the pipeline."

In an interview with the Business Herald in March, Gould said his investment approach was long term.

"I don't get too concerned about an exit strategy.

"Perhaps that's not wise, but it hasn't caused any problems for us so far - touch wood."