GPG sells British fire protection business

Guinness Peat Group (GPG) said today it has sold its British fire protection business, Staveley Fire Services.

GPG, the investment vehicle of Sir Ron Brierley, said it received £17.7 million ($46.5m) for the business, which had net assets valued at £600,000.

In the year to December 31, 2004, the fire protection business contributed turnover of £41.6m and operating profit before head office costs of £3.5m to Staveley's results.

GPG said the sale proceeds were in the form of cash, which would be used in the group's ongoing business.

Earlier this week the group also sold its 19.9 per cent stake in forestry and biotech investment firm Rubicon through an institutional book build.

The stake was sold at $1.03 per share, valuing the holding at $58.42 million, well below Rubicon's share price which was at $1.12 on the day the sale was recorded.

Last week GPG reported a £50 million net profit for the six months ended June, up from £7 million for the same period the year earlier.

Much of the profit was from the sale of GPG's shares in hotel group De Vere, which is understood to have netted about £30 million.

Shares in GPG last traded on the New Zealand sharemarket yesterday at $2.15, having ranged between $1.68 and $2.17 in the past 12 months.

- NZPA