Corporate raider Ron Brierley has reconvened some of his old gang via an A$2 million placement for his latest enterprise, ASX-listed Mercantile Investment Co.
Former Brierley International executive and Guinness Peat Group director Ron Langley and Gibsbourne Pty, a subsidiary of ASX-listed Ariadne Australia whose executive director is long-time Brierley lieutenant Gary Weiss, will each subscribe for A$1 million, or 12.5 million shares, in Mercantile, with the placement expected today.
The shares were placed at 8 Australian cents apiece, a premium to their last traded price on the ASX of 7.3 cents. The company's market value is currently A$18.3 million.
The funds will be used for "general investment purposes", Mercantile said in a February 23 statement to the ASX.
Brierley and his team at GPG were ousted last year in a shareholder revolt over plans to split up the investment company. That firm is now in wind-down mode, selling assets to return capital to shareholders.