Tainui Group Holdings sells 22.5m Ryman shares

NZPA

Wednesday 13th July 2011

Tainui Group Holdings has sold its 4.5 percent holding in retirement village operator Ryman Healthcare, with the funds to be initially used to reduce debt levels.

Tainui said it bought the 22.5 million shares in 2008 for $1.65 a share, and had sold out today at $2.58.

That would mean the parcel cost $37.13m and sold for $58.05m, with the difference being $20.92m.

Tainui chief executive Mike Pohio said the company disposed of its holding because it wanted to progress core investment opportunities.

As a first step, the money would be used to reduce debt level, following a period of heavy capital investment at The Base retail centre at Te Rapa, and the new Novotel Auckland Airport, Pohio said.

Ryman was well governed and managed, and Tainui would have held onto the stock if it had not been intending to pursue other objectives.

Ngai Tahu Holdings Group had waived its right of first refusal for the Ryman shares, which it had under a co-investment agreement with Tainui.

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