Investment Portfolio Update

RNS Number : 3515Q

Guinness Peat Group PLC

06 November 2012

 



GUINNESS PEAT GROUP plc

("GPG" or "the Company")

Investment Portfolio Update

On 25 October 2012, GPG announced that following the sale of its investment in ClearView Wealth Limited for A$124.3m (£80.7m) (including dividends), it had realised in excess of 50% (by volume and value) of the investment portfolio it owned on 1 January 2011. 

Since that time, there have been a number of developments with respect to certain remaining investments and these are outlined below:

§ On 2 November 2012, GPG completed the sale of its 72.5% interest in Green's General Foods to a management led consortium. Net cash sale proceeds received were A$38m (NZ$48m);

§ On 2 November 2012, TOWER Limited ("TOWER") announced that it has sold its health insurance business, TOWER Medical Insurance Limited, to nib holdings limited ("nib") for approximately NZ$102 million. The sale of TOWER Medical Insurance Limited to nib is subject to Overseas Investment Office approval and other conditions customary for a transaction of this type. Subject to satisfaction and timing of conditions, settlement is likely to occur before 31 December 2012.  The TOWER Board also indicated that it intends to repay capital to shareholders of not less than the proceeds of the sale. GPG is TOWER's largest shareholder, owning approximately 34% of TOWER's issued capital;

§ On 2 November 2012, GPG agreed to sell its 10.2% equity interest in Tourism Asset Holdings Limited ("TAHL") to existing shareholders of TAHL for net proceeds of A$20m (NZ$25m). Settlement is expected to occur on 9 November 2012;

§ On 29 October 2012, Newbury Racecourse plc ("Newbury") announced a proposed share buyback of GPG's entire shareholding in Newbury.  GPG is Newbury's largest shareholder and currently owns approximately 29.9% of the issued share capital. The proposed purchase price is 450 pence per share (a premium of approximately 16.1% to the closing mid-market price of 387.5 pence on 26 October 2012). The share buyback is subject to shareholder approval at a General Meeting to be held on 15 November 2012. If approved by shareholders, GPG will receive sale proceeds of approximately £6.4m (NZ$12.4m); and

§ On 5 November 2012, GPG received A$4.6m (NZ$5.8m) proceeds from a capital return  of A$0.15 per share made by PrimeAg Australia Limited ("PrimeAg"). The capital return was announced by PrimeAg on 30 August 2012, wherein the PrimeAg board also announced its intention to sell or wind-up the company.

GPG will continue to keep shareholders informed of further developments in relation to the above transactions and as other investment portfolio transactions progress. 

Chris Healy

Company Secretary

Guinness Peat Group plc

Tel: [phone]

6 November 2012

Enquiry details are:

New Zealand and Australian media:                      Geoff Senescall on:          [phone]

UK media:                                                                          Kevin Smith on:                 [phone]

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