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Pyne Gould seeks banking licence, may exit Wrightson

By Paul McBeth

Tuesday 30th September 2008

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Pyne Gould Corporation, which owns 22% of PGG Wrightson, said it may distribute its stake among shareholders to focus on its financial services units, transforming them into a bank.

PGC has held discussions with the Reserve Bank and will soon submit an application to register as a bank, it said in a statement. The core of its banking services will be based on its MARAC Finance and Perpetual Trust businesses, which already provide some banking services. The new bank will offer services to SMEs and to individuals

"The move by Pyne Gould to bank status is a continuation of the path that the Company has been following for the last several years," said managing director of Brian Jolliffe.

PGC is currently reviewing its structure, including its ownership of non-banking assets. Joliffe said the company might distribute its PGW stake to shareholders in a way that uses the benefits of imputation credits.

Shares of PGC were last unchanged at NZ$3.30 and have fallen 12% this year, outperforming the NZX 50 Index.>

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