COA - Coats Group plc (formerly GPG - Guinness Peat Group Plc)

[Gryffyn]

Seeing as the old buried-thread's title is somewhat discredited of late (like its author), I thought I'd start this one.

[Gryffyn]

Tower bid attracts scepticism

25.11.2004
By GARETH VAUGHAN
Tower's biggest shareholder, Guinness Peat Group, is in the box seat to gain control of the insurer's Australian money management unit if smaller shareholders shun the division's planned rights issue, says Macquarie Equities.

Tower is to transfer financial planner Bridges and money manager Tower Trust into a new company that will be listed on the Australian stock exchange - Australian Wealth Management. In exchange, Tower gets 120 million AWM shares and A$130 million.

The A$130 million will come from a renounceable rights offer of additional AWM shares. This will be underwritten by GPG, which owns 19.9 per cent of Tower.

About 80,000 of Tower's 117,000 shareholders are New Zealanders. No other shareholders hold more than 5 per cent.

The Macquarie research report suggests a take-up rate of below 35 per cent for the AWM rights issue would leave GPG with control of AWM "by stealth".

One analyst suggests the rights issue take-up rate, subject to any offer discount, will not be high.

"Would you tip in A$130 million of which A$90 million will be used to recapitalise another business, i.e. Tower?" the analyst, who asked not to be named, said.

Another school of thought is that many retail investors are likely to take up the rights issue, believing if GPG sees value in it, they should too.

Meanwhile, a Citigroup Smith Barney research report is also sceptical of the move.

"It seems increasingly likely to us that the decision to separate AWM may be as much about Tower undertaking a A$130 million capital raising as it is about positioning AWM on a solid growth footing".

Tower chairman Olaf O'Duill and GPG director Tony Gibbs yesterday poured cold water on GPG getting control of AWM.

O'Duill said it might be technically possible for GPG to end up with more than 50 per cent of AWM, but was not a realistic possibility.

Gibbs, who is on Tower's board, said it was "humorous" to even suggest it.

"It is pro rata to all shareholders, so everyone is being treated equally", Gibbs said. "It is a good deal for everybody, otherwise we wouldn't be doing it".

O'Duill said suggestions Tower had chosen a stock market listing over a trade sale because bids were below the $235 million Bridges and Tower Trust book value were wrong.

Tower did not seek trade sale buyers, and although some interest was received, price was not discussed.

"If anybody is serious about wishing to buy these businesses, they can bid for AWM after it's listed," O'Duill said.

An information memorandum is due early next month with a shareholders' meeting seeking approval in late January and listing scheduled for February.

O'Duill is confident shareholders will approve the plan.

[Gryffyn]

I think this is as relevent to this thread as it is to the TWR thread. We may see a lot of cross-posting in the weeks to come if the action hots up.

Disc: GPG, TWR

[Gryffyn]

Read a little snippet in the DP about another classic GPG play for some egg farm in Oz. Looks like they are setting up to consolidate a profitable area. By accounts their buying in at below NTA. Will post article if can find online.

Disc: GPG, TWR

[PrinceofWhales]

Here's another winner from GPG. This article is from today's Sydney Morning Herald:
__________________________________________________ __________________

At a buy-in price of about two bob, and probably a lot lower, Guinness has cleaned up.

It looks like Sir Ron Brierley's Guinness Peat Group has finally sold its stake in Reinsurance Australia Corp.

GPG has been selling down the stake of late, with the most recent substantial shareholder notice lodged only last week showing a selldown to 15 per cent from 17 per cent.

But traders report more selling trickling through in recent days - and yesterday a line of 21 million shares representing about 10 per cent of the company looks to have cleaned out the remainder of GPG's holding.

The line is believed to have been handled by Wilson's and was valued at $11.2 million. Traders reported it was the "end of a selling line" that's been around for a while and has been putting significant downward pressure on the stock.

Reinsurance Australia rose 3c yesterday to 57c as fears eased that the selldown of the remaining stock wouldn't find a happy home. GPG executive director Gary Weiss wasn't saying what the buy-in price was but ReAC has traded between 3c and 20c for a couple of years up until June last year.

[Runswifscissors]

quote:Originally posted by Gryffyn

Read a little snippet in the DP about another classic GPG play for some egg farm in Oz. Looks like they are setting up to consolidate a profitable area. By accounts their buying in at below NTA. Will post article if can find online.

Disc: GPG, TWR

The Egg Producer was Farm pride in Victoria. With Brierly also getting involved with the Salmon trade over there, maybe all hes trying to do is make himself a really good eggs benedict!

[Gryffyn]

Sure as eggs?

[Gryffyn]

GPG30/11/2004DIRINT REL: 0836 HRS Guinness Peat Group Plc DIRINT: GPG: Director Shareholding SCHEDULE 11 NOTIFICATION OF INTERESTS OF DIRECTORS AND CONNECTED PERSONS 1. Name of company Guinness Peat Group plc 2. Name of director Graeme James Cureton 3. Please state whether notification indicates that it is in respect ofholding of the shareholder named in 2 above or in respect of a non-beneficialinterest or in the case of an individual holder if it is a holding of thatperson's spouse or children under the age of 18 or in respect of anon-beneficial interest Own Holding 4. Name of the registered holder(s) and, if more than one holder, the numberof shares held by each of them (if notified) Graeme James Cureton - on the Australian Register - 50,526Buduva - on the Australian Register - 168,927 ------------- 129,453 -------------- 5. Please state whether notification relates to a person(s) connected withthe director named in 2 above and identify the connected person(s) Director 6. Please state the nature of the transaction. For PEP transactions pleaseindicate whether general/single co PEP and if discretionary/non discretionary On-market disposal 7. Number of shares / amount of stock acquired N/A 8. Percentage of issued class N/A 9. Number of shares/amount of stock disposed 150,000 10. Percentage of issued class 0.02% 11. Class of security Ordinary 5p shares 12. Price per share A$ 1.962 13. Date of transaction 29 November 2004 14. Date company informed 29 November 2004 15. Total holding following this notification 219,453 16. Total percentage holding of issued class following this notification 0.03% If a director has been granted options by the company please complete thefollowing boxes. 17. Date of grant 18. Period during which or date on which exercisable 19. Total amount paid (if any) for grant of the option 20. Description of shares or debentures involved: class, number 21. Exercise price (if fixed at time of grant) or indication that price is tobe fixed at time of exercise 22. Total number of shares or debentures over which options held followingthis notification 23. Any additional information 24. Name of contact and telephone number for queries J R Russell 020 7484 3370 25. Name and signature of authorised company official responsible for makingthis notification J R Russell 020 7484 3370 Date of Notification 29 November 2004 J R Russell 020 7484 3370End CA:00108667 For:GPG TypeIRINT Time:2004-11-30:08:36:00

[Gryffyn]

I never like it when Dirs sell but at least he still has a few. Maybe he has some xmas shopping to do?

Disc: GPG

[Taijon]

A few directors have reduced their holdings over the last 2-3 months. At around this price. SP seems to have a problem getting above $2.19. But a lot of things on the go for GPG at presnt and all of them look good.