Gallagher sells stake in rival

Security and fencing company Gallagher Group has sold most of its stake in rival company Tru-Test to Salvus Strategic Investments.

Gallagher had hoped to take over Tru-Test but had its application knocked back by the Commerce Commission in February.

At the time, Gallagher had a 14.7 per cent stake.

It is understood that the majority of that stake has been sold.

Salvus has paid Gallagher nearly $7 million for 4,373,352 shares in the unlisted company.

Salvus director Andrew Couch said Tru-Test offered a good mix of growth and value.

As an exporter of manufactured goods, it was poised to benefit strongly from a weakening dollar.

"We think our timing is excellent."

The company had been through some restructuring to improve profitability and the Salvus investment was a vote of confidence in that process.

Salvus' portfolio includes a mix of more than 20 listed and unlisted companies.

Some of the most prominent include a 10.1 per cent stake in Hallenstein Glasson, 8.2 per cent in Abano Healthcare, 8.1 per cent in Provenco 7.5 per cent of Lyttelton Port, 7.5 per cent of Mainfreight and 6.2 per cent of 42 Below.