GPG sells out of Rubicon

Corporate raider Guinness Peat Group (GPG) has sold its stake in forestry and biotech investment firm Rubicon to an undisclosed buyer.

The sale of the 19.9 per cent stake went through on Friday at $1.03 per share, valuing the stake at $58.42 million, according to a substantial shareholder notice filed to the Stock Exchange today.

GPG director Tony Gibbs wasn't immediately available for comment.

The substantial shareholder notice said it was a "sale of shares by private treaty, pursuant to a book build".

The sale price of $1.03 was well south of Rubicon's current price of $1.12.

Brokers say the deal raises questions about whether Rubicon's 50-per cent subsidiary Tenon is also in play.

"You wonder if it has got some precursor to something happening with Tenon as well," ASB Securities managing director Tim Preston said.

"Rubicon owns 50 per cent of Tenon. (The deal) is obviously part of a bigger picture. "

Mr Preston said the move came as a surprise.

Rubicon's share register was dominated by four parties prior to the GPG sale.

They include New York investment fund Third Avenue, with a 10 per cent stake, US investor Perry Corp which owns 19.8 per cent, and AMP which owns 10 per cent.

Tenon shares dipped 2c to $4.43 this morning, while GPG was unchanged at $2.11.

Rubicon chief executive Luke Moriarty said he was in the dark about the identity of the buyer.

"We have to wait and see who's on the other side of the placement of those shares before commenting," he told NZPA.

Mr Moriarty said he was not aware of any link between the Rubicon deal and Tenon.

- NZPA