GPG supports Time Products sale

By Phil Boeyen, ShareChat Business News Editor

Wednesday 16th May 2001

Guinness Peat Group (NZSE: GPG) should realise at least $66.5 million if an offer to buy all of British luxury goods company Time Products goes ahead.

The independent directors of Time Products say they have reached agreement in principle with the company's chairman, Marcus Maguilies, for a new company to acquire the business.

The possible offer is at 190 pence per share with shareholders entitled to the final dividend of 5.5 pence per share due to be paid at the end of July.

GPG currently holds around 10.4 million shares or 24.76% of Time Products and along with other major shareholders, Morley Fund Management and Edinburgh Fund Managers, has indicated its support in principle for the offer.

There is also a chance GPG could get an extra payout from the sale of Time Products investment in Audemars Piguet if net proceeds from the sale exceed £4.25 million and provided the sale takes place within five years of the offer going unconditional.

The management buyout of Time Products has been tipped for some time.

In March GPG tendered for 11.8% of the company at a maximum price of £1.50, but the Time Products told shareholders not to take any action because of a recent approach from management to acquire the business.

Although the tender was unsuccessful GPG continued to build a stake in the company, recently paying £1.75 per share.

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