PGC - Licenced to Bank

[Xerof]

Down 20 odd % since listing, and thats before the next and largest tranche of shares ex PGC hits the punters - what makes you think they will do anything but sell as well?

Finance coys are showered in ****e........PGC down over 30% on its own account - GK must be having kittens - or margin calls......

[percy]

Down 20 odd % since listing, and thats before the next and largest tranche of shares ex PGC hits the punters - what makes you think they will do anything but sell as well?

Finance coys are showered in ****e........PGC down over 30% on its own account - GK must be having kittens - or margin calls......

They may well sell .
The prospects for BSH are excellent.They are well funded,know what part of the market they want,and with Greenslade in charge should be able to achieve their objectives. I feel they will be well supported,and will do well where Aussie banks do not want to go.they have already achieved a lot bringing the merged three companies together.There will always be room for a finance company.Small growing companies need finance,as do people with ideas.

[corlemar]

They may well sell .
The prospects for BSH are excellent.They are well funded,know what part of the market they want,and with Greenslade in charge should be able to achieve their objectives. I feel they will be well supported,and will do well where Aussie banks do not want to go.they have already achieved a lot bringing the merged three companies together.There will always be room for a finance company.Small growing companies need finance,as do people with ideas.

I agree with Percy....BSH appears on the face of it, to be a clean company with no impairments like those that were seen a cple of years ago. It's targeting an area not seen or tapped by others, so I can only see the company significantly grow in value. It may take a cple of years, but the growth accompanied with good dividends will make this stock good value

[geezy]

PGC
13/04/2011 17:08
GENERAL

REL: 1708 HRS Pyne Gould Corporation Limited

GENERAL: PGC: PGC Announces Details of BSHL Share Distribution

NZX Release
PGC Announces Details of BSHL Share Distribution
13 April 2011

Pyne Gould Corporation Limited (PGC) today announced provisional details of a
planned in specie distribution of its 72.21% shareholding in Building Society
Holdings Limited (BSH) - a
move that is expected to pave the way for BSH entering into the NZX50 index.

Initial Court Orders have now been obtained in respect of the proposed pro
rata distribution, via a scheme of arrangement, of BSH shares to PGC
shareholders.

Documentation is now being finalised, and is expected to be distributed
following the closing
of the partial takeover offer made by Agria (Singapore) Pte Ltd for PGG
Wrightson. Agria's
offer is set to close on the 23rd of April.
Based on there being 216,630,283 BSH shares to be distributed amongst PGC
shareholders
(and there being 808,319,571 PGC shares) the d
istribution, if implemented,
will mean that:

- Each PGC shareholder will receive approximately 268 BSH shares for every
1000 PGC
shares held at the "Record Date".

- In consideration for that distribution, approximately 73.2% of the PGC
shares held by each PGC shareholder at the "Record Date" will be cancelled.
This means that of the total 808,319,571 PGC shares, approximately
591,567,312 will be cancelled. As the
cancellation applies to all PGC shareholders in the same way, it will have no
effect on each shareholder's proportionate interest in PGC (subject to
rounding).

The proportion of PGC shares to be cancelled was set so that the market value
of PGC shares
to be cancelled approximated the market value of the BSH shares to be
distributed (based
on the quoted market prices for PGC shares ($0.26 per share) and BSH shares
($0.71 per share) at the "Determination Time", being 5:00pm on 8 April 2011).

Following this distribution and cancellation, a PGC shareholder will hold
approxima
tely 268
BSH shares and 268 PGC shares for every 1000 PGC shares previously held.
The currently anticipated timetable is:
- Agria offer closes - 23 April
- Shareholder materials mailed out - 2 May 2011
- PGC shareholder meeting - 18 May 2011
- Record Date for determining entitlements under the Distribution - 27 May
2011.
- Distribution of BSH shares and cancellation of PGC shares - 30 May 2011
These dates are indicative only, and may change.
Distribution is an important step in giving effect to PGC's strategy to
return value to its
shareholders. It will benefit PGC shareholders by:
- resulting in the expected inclusion of BSH in the NZX50 index, as a result
of BSH shares being held by a broader range of investors than would otherwise
be the case had PGC remained as a dominant shareholder (PGC's shareholding is
currently disregarded by NZX for indexation purposes) although it is likely
that PGC will in time be removed from the NZX50 following the distribution
because it will not meet
the
free float capitalisation threshold for inclusion in the NZX50 index;
- encouraging broader institutional investor interest in BSH shares, and
therefore
improving institutional representation on the BSH share register, as a result
of
gaining entry into the NZX50 index; and
- increasing the frequency and volume of trading in BSH shares, due to BSH
having a
more diverse shareholder base, which should promote price discovery and help
reduce pricing anomalies which can occur in less liquid stocks.

Background
The merger of the financial services businesses of MARAC Finance Limited,
Southern Cross
Building Society and Canterbury Building Society was successfully completed
on 7 January 2011 and BSH (the parent of the new Heartland financial services
group) was listed on the
NZSX on 1 February 2011.

Following completion of the Merger, the PGC Group holds a 72.21% stake in
BSH.
Earlier this week BSH released its opening financial position as at 7 January
2011 confirming
the company had n
et tangible assets of 88c per share.
- Ends -

For further information contact:

Michael Jonas
General Counsel
Pyne Gould Corporation
DDI 09 927 9111
Mobile 029 770 0181
End CA:00208003 For:PGC Type:GENERAL Time:2011-04-13 17:08:50

didnt see anyone post this so i might as well

[Lizard]

Posted below on the BSH thread, but really belongs here...

NTA per "new" PGC share would be about 95cps, with 38cps of PGW shares/cash. But currently, at 31cps for PGC shares and 70cps for BSH, the market is valuing the reconstructed PGC at about 45.6cps - i.e. =(31-70*.268)/.268.

On revenues/profits from continuing ops and cash from PGW (assuming able to be sold in full at Agria equivalent price), I think worth around 60cps, but lots of uncertainty around that figure - fee revenue has fallen dramatically in first half and hard to get a feel for ongoing returns from the likes of Torchlight and the property management arm. Reads to me like the property management side might have a few risky bits to it.

One thing that I did not get is why the distribution of BSH shares was waiting on the Agria bid going unconditional? Also, given that they are intending to distribute all the BSH shares, why do they then mention the possibility of using excess cash from sale of PGW shares to provide equity assistance to BSHL? If they want to separate out, why get back in? Is it just easier to inject new equity if they are not a majority holder or does it mean they are free to negotiate a better price for providing assistance without impairing the value of their existing holding?

[Lizard]

I suppose one possibility in answer to my last paragraph is that it might put PGC in a position where they could partially underwrite a BSH rights issue once the shares are distributed.

[percy]

Posted below on the BSH thread, but really belongs here...

NTA per "new" PGC share would be about 95cps, with 38cps of PGW shares/cash. But currently, at 31cps for PGC shares and 70cps for BSH, the market is valuing the reconstructed PGC at about 45.6cps - i.e. =(31-70*.268)/.268.

On revenues/profits from continuing ops and cash from PGW (assuming able to be sold in full at Agria equivalent price), I think worth around 60cps, but lots of uncertainty around that figure - fee revenue has fallen dramatically in first half and hard to get a feel for ongoing returns from the likes of Torchlight and the property management arm. Reads to me like the property management side might have a few risky bits to it.

One thing that I did not get is why the distribution of BSH shares was waiting on the Agria bid going unconditional? Also, given that they are intending to distribute all the BSH shares, why do they then mention the possibility of using excess cash from sale of PGW shares to provide equity assistance to BSHL? If they want to separate out, why get back in? Is it just easier to inject new equity if they are not a majority holder or does it mean they are free to negotiate a better price for providing assistance without impairing the value of their existing holding?

Thanks for your reply Lizard.I thought everyone had lost interest in the NTA of 'new' PGC so I thought I would provoke some.
I think Bruce Irving stated some-where they were waiting for the Agria bid to go unconditional so they could work out how PGC would repay MARAC loan.{Note I thought Marac owed PGC,so was wrong again}.As for providing equity assistance to BSH.? I have no idea unless there is a tie up with Agria over PGW finance being sold to BSH with PGC getting some parts.{This has been denied].Makes no sense to me.

[Lizard]

Yes, I just got from the interim report:

• fund repayment of the Promissory Note owing to MARAC;
• provide working capital and expenses for the ongoing PGC businesses;
• the balance will be distributed to PGC shareholders or used to provide equity assistance to BSHL, if required.

Though I think repayment of the loan uses up a good chunk of the funds if they get scaled right back on the Agria offer, so wouldn't be much to go on BSHL anyway.

[ETC]

I think PGC owes MARAC around 27 million.

In one of their updates PGC ellude to the fact they may provide capital to BSH for more shares, I'm guessing this'd happen to allow BSH to make some sort of acquisiton... cough* cough* PGW finance. This might be good for PGC shareholders but will have a negative effect for SCBS and CBS shareholders who own the other 28% of BSH.

[Lizard]

I think BSH is more likely to want extra equity in order to fund lending while their depositor base contracts.