GPG sells Australian trust stake

Guinness Peat Group has sold its A$13 million ($14.45 million) stake in Tasmanian Perpetual Trustees to Trust Company of Australia, setting the scene for rationalisation of the Australian trustee industry.

GPG, the investment vehicle of corporate raider Sir Ron Brierley, sold 2.16 million shares, or 9 per cent, of Tasmanian Perpetual Trustees last Friday, The Australian newspaper reported.

Trust Co is believed to have bought the bulk of Sir Ron's holding, providing it with leverage for a prospective corporate play.

Trust Co merged with Permanent Trustees in December 2002 and has successfully bedded down the transaction, exacting A$5 million in synergies and pushing its stock price up 80 per cent in two years.

In exiting one of its oldest positions in the market, GPG can now turn its attention to its other trustee investment, AWM.

GPG has a 32 per cent stake in AWM, which owns the old Tower Trust and Bridges operations.

Shares in GPG last traded yesterday at $1.98.

- NZPA