Business
Strategy to Realise Value
Strategy to Realise Value.
About this update from Coats Group Plc
[{"type":"text","content":"\n RNS Number : 0589B Guinness Peat Group PLC 10 February 2011 \n \n\nGUINNESS PEAT GROUP PLC\nANNOUNCEMENT\n \n \n\n\n\n\nGPG Announces Strategy to Realise Value\n§ GPG to undertake an orderly value realisation of GPG's investment portfolio over time.\n§ As part of the orderly value realisation, GPG's investment portfolio may be reduced to the point where an investment in GPG becomes a pure exposure to Coats.\n§ Cash proceeds from the orderly realisation of investments to be used to pursue capital management initiatives.\n§ GPG to undertake an initial capital return to shareholders of at least £75m (A$120m / NZ$158m) in the 2011 calendar year, subject to shareholder, tax and other approvals as necessary to effect the capital return. GPG will provide further details once the form, final amount and process of the capital return has been determined.\n§ GPG Board is conducting a search to seek to appoint a senior executive to implement the orderly value realisation strategy.\n§ GPG to hold AGM in June in New Zealand.\n\n\n\n\nThe Board of Guinness Peat Group plc (\"GPG\") today announced its strategy to optimise value for all GPG shareholders. This follows a recommendation to the Board by an independent sub-committee which was established in September 2010 and comprises GPG non-executive directors (Mr Mike Allen, Mr Rob Campbell, Mr Mark Johnson AO and Mr Gavin Walker).\nThe focus of the independent sub-committee has been on evaluating options to enhance GPG shareholder value, recognising that GPG shares trade at a material discount to net asset value (currently in excess of 30%).\nAs part of its evaluation, the independent sub-committee identified a number of issues with the current GPG business including:\n· a large, complex and geographically diverse portfolio of assets, including a mix of minority shareholdings and wholly owned businesses (including Coats);\n· a lack of value transparency with a number of unlisted investments, the largest of which is Coats;\n· a disappointing performance in recent years; and\n· a number of actual and contingent liabilities, including capital notes, pension liabilities and potential payment of a European Commission fine, some of which are uncertain as to the timing and quantum of liability borne b...