Investment Research Group sells advisory business

Investment Research Group, the financial services company that is shedding assets to become a listed shell company, has sold most of its IRG Equity Investment Advisors unit to brokerage Forsyth Barr.

Two of its advisers will transfer to Forsyth Barr and clients will be encouraged to follow, IRG says.

No price was disclosed.

Managing director Brent King said the basis of the sale was "an initial deposit with ongoing payments based on performance".

IRG would continue to operate the residual of IRG Equity, its MoneyOnline unit and its media products, using its remaining three advisers, the company said.

Separately, IRG's major shareholder, GA Sego, has agreed to advance $750,000 to IRG as a bridging loan, which would allow "financial stability for IRG during the sell-down process", the company said.

It has gained a waiver from the NZX from getting shareholder approval for the loan, which amounts to a related-party transaction. Shares of IRG closed steady yesterday at 0.3c.