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Gary Weiss says GPG has "a range of opportunities" for reinvesting its AWM profit.
Investment company Guinness Peat Group has booked a profit of nearly $200 million after selling its stake in Australian Wealth Management so it can better invest the money elsewhere.
GPG sold its 19.4 per cent stake in the ASX-listed company to institutional investors for A$2.43 ($2.73) a share for a total of A$267 million, giving GPG a profit of A$172 million ($193 million) in the two years it has held the stock.
"We believe it's an appropriate time for us to realise our investment with a view to employing the funds elsewhere where we can more directly enhance value," said GPG director Gary Weiss. "It's not a reflection on AWM."
Weiss declined to say how the money would be reinvested. "We've got a range of opportunities before us at the moment and we'll just see what develops over time."
Shares in AWM - a provider of investment management products and services - closed at A$2.51 on the ASX yesterday. GPG closed up 2c at $2.30.
GPG acquired its stake in the company when it was spun off from insurer Tower, in which GPG is a cornerstone shareholder, when the shares were issued at A$1 each.
Tower has since been split into separate Australian and New Zealand businesses.
Weiss said GPG was holding on to its stakes in both companies.
