SCF sells Pyne Gould stake to family interests at premium price

South Canterbury Finance has sold at a premium price its stake in Pyne Gould Corporation.

The Timaru-based finance company, which has started a rationalisation and restructuring process, yesterday said it had sold 29 million shares at 50c a share.

It was PGC's third largest shareholder with 3.82% of the company.

The buyers were George Kerr, a great-great-grandson of the founder of Pyne & Co, established in 1887, and the Pyne family through Pyne Family Holdings.

Mr Kerr is generally perceived to be the architect, or at least the driving force, behind the former stock and station business' new strategy to become a listed bank and funds management business and its recent large and successfully executed capital raising to support those plans.

Mr Kerr now holds nearly 15% of PGC and the Pyne family 14.8%.

At 50c a share, South Canterbury Finance could pour $14.7 million back into its coffers, Craigs Investment Partners broker Chris Timms said.

The sale would be seen as part of the rationalisation of the finance company as it prepares itself for NZX listing next year as Southbury Corporation.

The price paid was 5c above Friday's closing price.

The sale was interesting because South Canterbury Finance was selling out to existing shareholders who were prepared to pay a premium price.

"That's an indication they have confidence in the company going forward.

"If anything, Mr Kerr should know," Mr Timms said.

South Canterbury had other investments, some of which could be realised.

They included bonds in Silver Fern Farms, Fletcher Building, New Zealand Post, Contact and Tower Corporation.

South Canterbury also held shares in ING Medical, Nuplex, New Zealand Oil and Gas, Goodman Properties, New Zealand Refining, Restaurant Brands, AMP Office, Rakon, Vector, Goodman Property, Freightways, Renaissance, Austral Pacific, Hellaby and Allied Workforce.