GPG flags week-long trading halt for capital return

Tony Gibbs departed last year after a boardroom showdown over the future of GPG. Photo / Paul Estcourt

Guinness Peat Group, the investment company formerly led by Ron Brierley, will halt trading in its shares next week to make its capital return to shareholders of some $158 million.

Trading in the company's London Stock Exchange-listed shares will be suspended from June 28 and the NZX-listed stock will be halted on June 29, with both resuming trading on July 6.

Trading in the ASX-listed CHESS Depository Notes will halt on June 30, with deferred trading beginning on July 7 and normal trading resuming on July 21.

The temporary suspension will let GPG complete its share cancellation, which was approved by shareholders at the June 8 annual meeting, held for the first, and probably last, time in New Zealand.

GPG is in the process of winding itself down after several years of lacklustre performance from U.K.-based threadmaker Coats Plc., its biggest holding.

The investment company overhauled its governance after a shareholder revolt last year, with Brierley stepping down as chairman in December, and Sydney-based Gary Weiss relinquishing his seat at the board in April.

New Zealand-based Tony Gibbs departed last year after a boardroom showdown over the future of GPG, while the last of Brierley's lieutenant's, Blake Nixon, gave up his executive role last month.

Shares in GPG were unchanged at 78 cents in trading yesterday, and have gained 8.3% this year.

- BusinessDesk