Businessman George Kerr and major shareholder Baker Street Capital LP are trying to take Pyne Gould private via a full cash takeover offer at a price near a record-low share price, arguing the company "has little in common with the PGC shareholders have long been associated with".
The great-great-grandson of F H Pyne, who started one of PGC's founding businesses, Pyne & Co. in 1887, has 80 per cent of the capital of bid vehicle Australasian Equity Partners Fund No. 1 LP via Pyne Holdings and US hedge fund Baker Street Capital has 20 per cent.
AEP is offering 33 cents a share, which is a small premium to the 26-cent record-low reached last month and 27 cents in morning trading. The shares have since climbed to 32 cents.
Pyne Holdings owns 13.2 per cent of PGC and Baker Street Capital owns 19.78 per cent. The bidder says these holdings together with commitments from major shareholders, including Accident Compensation Corp., with 4.53 per cent give it a total 37.51 per cent via lockup agreements.
"Baker Street and I have therefore decided that, with the remaining PGC businesses focusing on growth rather than dividends, it is appropriate to give all shareholders the opportunity to sell their shares for cash now," Kerr said.
