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Real-Time news about Guinness Peat (London Stock Exchange): 0 recent articles
|topvest: A disastrous judgement this week - a Euro 138m fine is way over the top for a company the size of Coats, whatever they did or did not do. I'm amazed that they are being asked to pay such an enormous sum. What were their lawyers actually doing? I was looking to invest here on the back of NAIT and Oryx comments about the break-up value being significantly in excess of the c30p share price. With this judgement and the massive pension scheme issues, I'm not sure now. Has anyone worked out how much the return is likely to be?|
|nod: A good 60% profit by GPG on its MSF shareholding.
Now Mitr Phol Thailand, Asia's largest sugar producer and the sixth-largest sugar producer in the world, has conditionally agreed to acquire 19.9 per cent of MSF from Ron Brierley's Guinness Peat Group (GPG) for $4. That's a premium of 46.5 per cent to MSF's previous share price of $2.73 and a premium of more than 60 per cent to GPG's average entry price of between $2.25 and $2.50 a share.
GPG still owns a residual stake of 4.6 per cent, having only weeks ago lifted its shareholding by a further 1 per cent to 24.5 per cent.
|nod: GPG reveals plan to split in two
Duncan Bridgeman | Wednesday June 16, 2010 - 11:42am
UPDATED Troubled investment company Guinness Peat Group has revealed plans to unlock shareholder value by spinning off its Australian business into a new listed entity followed by a planned float of thread maker Coats.
Shareholders in the company, founded by Sir Ron Brierely, will be asked to vote on the restructure in November once initial regulatory approvals are obtained.
The first step involves the demerger of GPG Australia, which holds a varied portfolio of investments with a net asset value of approximately $580 million, GPG said in a statement.
These assets would be bundled together and dual listed on the ASX and NZX.
All cash and liabilities would be allocated between GPG Australia and GPG Group before the demerger, with the latter initially retaining approximately 20% shareholding in GPG Australia.
GPG Group would retain its UK and New Zealand investment portfolios, which includes a 65% stake in Turners & Growers and a 35% stake in insurance company Tower.
After the demerger GPG Group would have a net asset value (NAV) of approximately $1.23 billion, including cash holdings of more than $220 million based on April 2010 valuations.
The proposal to spin off the Australian assets is understood to have been driven by director Gary Weiss, who is reportedly at odds with fellow directors Sir Ron, Tony Gibbs and Blake Nixon.
Plan for Coats
GPG said the restructure was an important prerequisite to an "efficient and value-enhancing" float of Coats, which GPG acquired in 2003.
Coats represents about a quarter of GPG's investment portfolio but has struggled against the economic downturn post the financial crisis in 2007/08. In December GPG valued Coats at $635 million.
Uncertainty over the return from Coats has contributed to GPG's sagging share price, which fell 20% last month. The shares have consistently traded at a discount of about 30% to NTA over the past three years.
GPG said today it anticipated a float of Coats within the next two years.
GPG said Coats had responded well to the financial crisis and had a much-improved performance in the 2010 year to date.
"Nevertheless it is considered that an immediate flotation of Coats is not in shareholders' best interests given the nascent stage of recovery in relation to Coats' markets and customers and the current uncertainty in relation to international financial markets.
"While Coats has taken longer than expected to turn around, its reorganisation is now largely complete. Under new chief executive, Paul Forman, Coats is pursuing a growth strategy."
Sir Ron said the board had been evaluating with management a number of alternatives and was conscious that substantial changes could not be indefinitely postponed.
Immediate liquidation under the current structure would "destroy value for shareholders given that GPG plc's investments and actual and contingent liabilities (including in relation to pension funds) are at varying stages of maturity and liquidity.
"This proposal will create an exciting and regionally-focused activist investment company in Australia with the entrepreneurial flair to create value for shareholders in the best traditions of GPG," Sir Ron said.
GPG said that there was also potential for similar geographical separation of the New Zealand and UK interests.
GPG shares rose 1c to 67c on the NZX this morning.
|aspex: Ron Brierly waffled at the AGM
"I think the focal point of this year's Annual Report is the outlook section
which refers to the return of value to shareholders and the intention to
have a process in place by the time of today's AGM.
That part is literally true insofar as we do have a process in place and
which is no mere formality.
GPG shares are listed on 3 different stock exchanges, we have direct
investments and businesses (quite apart from Coats) in 4 countries, and
most of the shareholders are in New Zealand but there are, in addition,
significant institutional holders in the United Kingdom, Australia, Asia
Also, GPG is incorporated in the United Kingdom, where corporate
bureaucracy is simply spiralling out of control.
That is a model which no longer works for GPG but formulating structural
changes where what shareholders already own is not eaten up in excessive
taxes and other charges is a very complex equation.
However, we are making progress and will continue to do so.
In terms of GPG's 20 year history, a few more weeks, or months, if
necessary, is not critical.
Much better to reach the right conclusion rather than anything more
precipitate but recognising that, inescapably, substantial changes cannot
be indefinitely postponed.
Shareholders will be kept informed, as and when decisions are made.
In the meantime, GPG in its present form, notwithstanding two bad years
behind us, remains in a healthy position with the current share price well
supported by net assets of 56p, which we believe to be conservatively
stated and prospective for added value."|
|swiftnick: Useful market update from the company this morning.
Net asset value 53.73p.
Share price 31.5p plus 1p dividend = 32.5p.
Current discount to net asset value = 39.5%
The net asset value includes Coats at book cost of £299m. Ron Brierley comments that: "The ultimate realisation value of Coats is considered to be significantly in excess of this figure."
AGM next Friday.|
|nod: The market update was no great surprise. GPG obliged to mark down most of its listed investments and make a paper loss of £35m
GPG invests in turnaround and/or distressed companies and most of those have seen severe share price falls over the past six months. GPG gave a list of all their investments and current valuations, which is an unusual move.
They also reiterated their aim to return funds to shareholders in 2010 - markets permiting.|
|swiftnick: Interim results announcement at http://www.rns-pdf.londonstockexchange.com/rns/0730C_-2008-8-26.pdf.
Revenue up 7%, small loss due to share portfolio writedowns of £35m.
Net asset backing per share at 30 June (before the sale of Tower Australia) of 65.45p against the current share price of 52.5p (a discount of 19.8%).
Sir Ron Brierley announces his retirement as Chairman in 2010.|
|slong: I have been in gpg for a while but the recent poor results have given me a positive outlook for the next year or so. 1) GPG have made a mint out of the De Vere share sale, which was post y/e and thus will be reflected in the next year 2) GPG have a habbit of writing off investments very early in their life cycle and hence when they eventually sell them on people are generally suprised that the sale generates so much asset value 3) the chairman stated that there were more sales to come this year, which following my point in 2) could lead to a large cash injection this year, now we all know that GPG will not return this cash to the shareholders, but I for one have alot of faith in them investing it wisely to produce a capital gain on the share price.
This one is a deffo for the portfolio as a share you dont have to watch every day, the board look after your investment for you!
All IMHO of course|
|nod: GPG is a popular share in New Zealand whose market has enjoyed a strong rise over past 2 years. GPG's porfoliio rising strongly. NZ demand is pulling up GPG. Share floats imminent.|
Guinness Peat share price data is direct from the London Stock Exchange