GPG Group to spin of Aussie assets
June 16, 2010
UK based investment company, Guinness Peat Group Plc (GPG), has announced it will spin-off its Australian interest as a separately listed entity on the Australian Stock Exchange. The decision to restructure comes following a comprehensive review of the company’s corporate structure, with the float revolving around one of its core subsidiaries, thread manufacturer Coates, the company said.
”GPG Group holds a large portfolio of assets, but within the current structure their collective value is obscured by corporate complexity and geographical diversity,” the company said.
Despite flagging the spin-off of Coates, GPG said the effect of the global financial crisis was still too raw, and the float would be at least two years away.
GPG said it had also considered a liquidation of assets here, however concluded that this wouldn’t be in the best interests of shareholders.
At 1114 AEST, GPG Group shares were up 0.5c at 55c.
”GPG Group holds a large portfolio of assets, but within the current structure their collective value is obscured by corporate complexity and geographical diversity,” the company said.
Despite flagging the spin-off of Coates, GPG said the effect of the global financial crisis was still too raw, and the float would be at least two years away.
GPG said it had also considered a liquidation of assets here, however concluded that this wouldn’t be in the best interests of shareholders.
At 1114 AEST, GPG Group shares were up 0.5c at 55c.
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