Sharechat Logo

GPG sells stake in ASX-listed Ridley Corp for A$54 mln in cash

Monday 6th May 2013

Text too small?

Guinness Peat Group, which expects to rebrand itself as UK threadmaker Coats later this year, has sold its 20 percent stake in ASX-listed agri-products maker Ridley Corp.

The London-headquartered firm expects to reap A$54 million in cash proceeds from the sale, adding the equivalent of some 34 million British pounds to the 129 million pounds it has generated from asset sales and capital returns this year. That would take total cash raised to 623 million pounds since GPG embarked on liquidating its portfolio in 2011.

Once GPG's assets have been sold, it will rebrand itself as Coats, its biggest holding, something likely to happen in the second half of this year.

Last month, the investment firm received a notice from the UK Pensions Regulator that the British watchdog will look at whether the Coats pension schemes should be supported by other entities in the group.

GPG had previously expected it would need to set aside 124 million British pounds to cover any shortfall in its pension scheme obligations. As at Dec. 31, the pension fund shortfall was valued at 281 million pounds, with low global interest rates eroding theoretical future returns relative to its expected liabilities.

Shares in GPG rose 0.9 percent to 55.5 cents today, while shares in Ridley jumped 11 percent to 87 Australian cents.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

GPG still wrangling UK pension liability, Coats 1H earnings more than doubles
Guinness Peat completes $1.4 billion in asset sales, turns focus to Coats
Guinness Peat exits last asset outside Coats, sells Tower stake for $118 mln
GPG focuses on cost cutting as restructuring plan is delayed by UK pensions regulator
GPG names new non-executive chairman of Coats
GPG says UK regulator extends investigation into its pension schemes
GPG pension headache puts brake on wind-down plan
GPG to reap 92 mln pounds from latest round of asset sales
GPG thrown curved ball as UK regulator looks at Coats pension plan
Guinness Peat agrees to sell stake in Australian property developer CIC to Peet for A$15 mln

IRG See IRG research reports