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Pyne Gould takes Skellerup's spot

Monday 18th January 2010

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Pyne Gould (NZX: PGG ), the finance group that raised $267 million last year, joins the NZX 50 today, replacing manufacturing Skellerup Holdings.

Shares of Pyne Gould, which aims to morph into a bank and asset management company, last traded at 49 cents, giving it a market value of $379 million, and have slumped more than 80% in the past 12 months.

The Christchurch-based company underwent the capital raising as part of the reorganisation of its balance sheet which saw it shuffle $175 million of impaired loans from the books of its Marac finance unit, taking an $85 million charge, to its Perpetual asset management unit.

Standard & Poor’s downgraded the company’s credit rating below investment grade to BB+.

The company issued 594 million new shares through a rights issue and placement last year. Skellerup’s shares last traded at 48 cents, giving it a market value of about $90 million, and have declined about 31% in the past 12 months.

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