Pyne Gould Corporation Limited
Registered Office Address
233 Cambridge Terrace
Christchurch
Directors
ELWORTHY, Richard Frank
FRANCIS, Richard Norton
GOULD, George Arthur Churchill
MARTIN, Simon Dennistoun
SAUNDERS, Timothy Ernest Corbett
MALING, Samuel Richard
GOULD, Jeremy William
MONTGOMERY, Stephen
ASTOR, Sarah Louise
Background
Incorporated: 14-MAY-1987
The roots of the present company go back to the early
days of the Canterbury province.
Pyne Gould Guiness was founded in 1919 as a stock and
station agent. The company was the result of a merger
by three Canterbury stock companies - one of which
had been operating since 1851.
When these three business' merged, they created a
company that was to become one of the most
substancial stock and station agents in the region.
The company has been involved in a very diverse range
of activities during its history: trust services,
lending, marketing grain and seed, stock auctioneers
and the sale of thoroughbred horses, to name a few.
Pyne Gould Corporation was established in 1988 as an
umbrella company, with Pyne Gould Guiness becoming a
wholly owned subsidiary.
While its competitors have either disappeared or
merged into new entities, PGC has developed into a
diverse company with its rural servicing business as
strong as ever but now balanced by activities and
investments in other areas.
Excerpt from Perpetual Trust Annual Report
Major Shareholders
Shares on Issue
11,973,657
Ownership Restrictions
Minimum Holding: 200
Share Registry
P.O. Box 167
Christchurch
Major Assets
Perpetual Trust
Allied Finance
Nissan Finance
MARAC
Pyne Gould Guiness (68.5%)
Website
News
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22.03.02 - NBR Personal Investor
Rural and financial services comapny Pyne Gould Corporation reported a $6.8 million December
half-year profit after merging with Reid Farmers and buying two finance companies. It said it
expected to at least match last year's earning, before one-offs and goodwill amortisation, of
$16.5 million this year.
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28.11.01 - NZSE Company Announcement
NAME CHANGE TO PYNE GOULD GUINNESS
The directors of Pyne Gould Guinness Reid Farmers Ltd have decided to change the name of the
company to Pyne Gould Guinness Ltd.
"We formed a clear view that the company needed to operate all its businesses under one
brand. Our evaluation of the alternatives available led us to the conclusion that the PGG
brand best fits all areas of our operations" Chairman Bill Baylis said.
"It follows from this decision, that the company name should be changed to reflect that
decision. The company will therefore be named Pyne Gould Guinness Ltd. Our commitment to
provide a high quality service to all of our clients, South Island-Wide remains" he said.
The company will adopt the brand name PGG and Pyne Gould Guinness Ltd as its registered name
from today.
The company is currently listed on the New Zealand Stock Exchange as Pyne Gould Guinness Reid
Farmers Ltd and its name will change to Pyne Gould Guinness Ltd.
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Friday 14th September 2001 - NBR Personal Investor, by Nick Stride
Shareholders in Reid Farmers have approved a merger with Pyne Gould Guinness, creating the
South Island's largest rural services company.
The merged company will be known as Pyne Gould Guinness Reid Farmers. It will have revenues
of around $255 million and a net profit of around $12.8 million on 2001 figures. Reid Farmers
will issue 44 million shares to Pyne Gould at an equivalent $1.10 a share. On that basis Reid
Farmers represents 56% of the merged company.
Pyne Gould, a private unlisted company with a wide spread of shareholders, moves from 44% to
68.5% of the listed company.
Not included in the deal are Pyne Gould's finance company interests, which have been
expanding rapidly in the Auckland region. Pyne Gould will appoint a further three directors
to the board, giving it five out of ten seats. Chairman Bill Baylis will retain his position.
The new company will have 100 million shares on issue. At Reid Farmers' closing price on
Wednesday of $1.22 it will have a market capitalisation of $122 million.
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Friday 20th July 2001 - NBR Personal Investor, by Chris Hutching
The partial reverse takeover of listed Reid Farmers by Pyne Gould Corporation (PGC) will
merge the rural servicing activities of both companies and get around aspects of the new
Takeovers Code.
The deal involves Reid Farmers issuing 44,010,006 shares at $1.10 worth $48 million to PGC in
consideration for the shares of its rural servicing subsidiary Pyne Gould Guinness (PGG). The
transaction will mean that PGC lifts its stake in Reid from 44% to 68.5%.
PGC managing director Richard Elworthy said the merger device was a way of retaining the
loyalty of Reid shareholders, many of whom were also clients. PGC would also consolidate more
of the profits of Reid.
The issue of shares by Reid gets around the requirement for PGG to make an offer to all Reid
Farmers shareholders as would be required under the Takeovers Code. The timing is
significant. With rural fortunes at a high the move looks positive and there will be savings
in head office administration. But the two rural servicing companies operate in different
areas - Canterbury and Otago/Southland - so there will be limited opportunities for
rationalisation.
The move arguably gives the public unlisted PGC more flexibility to either increase its stake
in rural servicing or sell down if it looks prudent. PGC will appoint five of the 10
directors on the renamed Pyne Gould Guinness Reid Farmers, which will retain its Stock
Exchange listing.
The rural servicing activities will be managed from the Reid head office in Dunedin while the
financing activities of PGC will continue to be based in Christchurch. Reid recently
announced plans to build a new office, client service centre and wool store in Dunedin.
Rural servicing represents about one third of PGC group business with the bigger earning
trustee and financing subsidiaries providing the bulk of its income and accounting for about
$660 million of assets.
Pynes nearly doubled its financing division a few months ago with the purchase of Auckland
finance company Marac for $41 million and Dunedin-based Frontline Finance from John Gilks for
$20 million. It simultaneously bid for the remaining 49% of listed cash box, South Eastern
Utilities.
Last year it merged two other finance companies, Allied Finance and Finance & Discounts, and
increased the Auckland operations of those companies.
Reid Farmers reported a $4.6 million tax-paid profit for the year ended June 30, up 14.9% on
the year before. PGC reported an after-tax profit in June 2000 or $12.2 million.
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Friday 15th June 2001 - NBR Personal Investor, by Chris Hutching
Booming rural fortunes are behind the plans by Pyne Gould Corporation to merge with, or more
realistically take over, listed Otago rural servicing company Reid Farmers, of which it
already has 44%.
While city folks have yet to see many of the benefits from soaring farm incomes, it is a
different story in provincial centres where Pyne and Reid Farmers ply their stock and
station services and where farmers have been spending up large.
The talks between the two companies are at an early stage and may involve a scrip offer for
the 56% Pyne does not own.
About a third of Pyne business is now in stock and station operations, with the
bigger-earning trustee and financing subsidiaries providing the bulk of its income and
accounting for about $660 million of assets.
Just before Christmas Pyne nearly doubled its financing division with the purchase of
Auckland finance company Marac for $41 million and Dunedin-based Frontline Finance from John
Gilks for $20 million.
It simultaneous bid for the remaining 49% of listed cashbox South Eastern Utilities. These
moves follow the merger last year of two other of Pyne's finance companies, Allied Finance
and Finance & Discounts, and the enlarging of the Auckland operations of those companies.
In the year ending June 2000 Pyne's after-tax profit excluding one-off items was $12.2
million on a turnover of $210 million. Shareholders received a total dividend for the year
of 16c a share.
The takeover of Reid Farmers would double Pyne's stock and station operations and leave
Wrightson as the remaining rival in the south. Commerce Commission approval may be required.
Reid Farmers has posted a "don't sell" notice pending further talks. It reported an
after-tax profit for the six months ending December 31 up 62% to $2.7 million.
Reid Farmers shares rose from $1.10 to $1.26 on the takeover news.
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Thursday, December 14, 2000 - NBR Briefs
The independent directors of South Eastern Utilities have recommended the takeover offer from
majority shareholder Pyne Gould Guinness and say they will accept it for their own
shareholdings. The offer is $1.08 per share plus a share of proceeds from the sale of SEUL�s
interest in Genztech, if sold before December 31.
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Monday, December 11, 2000 - NBR Briefs
Christchurch-based Pyne Gould Guinness has become a significant force in the financial
services sector with two major acquisitions worth over $60 million. Earlier in the week, PGG
acquired Auckland-based Marac Finance and Marac Securities, previously known as UPC
Securities, for $41 million.
In the latest deal, PGG has acquired Dunedin's Frontline Finance, which was launched a few
years ago with a portfolio of loans from Motor Trade Finance. With previously acquired Allied
Finance, PGG now has three finance companies straddling the key markets of vehicle financing,
plant and equipment financing and property development financing. Total assets of the group
are $660 million.
In a separate move, PGG has made a takeover bid for all the outstanding shares in South
Eastern Utilities at $1.08 a share. The offer is conditional on 90% acceptance and also
states shareholders will receive a proportionate share of SEUL's investment in Genztech if it
is sold before December 31.
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Friday, November 17, 2000 - NBR Briefs
Pyne Gould Corporation has given notice of a takeover offer for the 49.7% of South Eastern
Uilities which it currently does not own. It is offering $1.07 per share. Pyne Gould's board
said it was time for all shareholders to be given the opportunity to realise their shares at
a value which reflects the company's $64 million of cash.
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