Business

Pyne Gould announces finance business shakeup

07:38 am on 23 July 2009

Pyne Gould Corporation, which owns the Marac finance company, is rearranging its finance and investment business as it prepares to apply for a banking licence.

Marac intends to stop lending on development loans, and sell this part of its portfolio for $160 million to a newly established fund.

Marac will invest the money in government and bank securities to boost its capital base.

The new fund, Torchlight Credit Fund will also acquire other property based assets.

This will cost Pyne Gould a one-off charge of between $60 million and $65 million for the full year.

Meanwhile, Pyne Gould is buying asset management firm Equity Partners Asset Management from director and Pyne family member George Kerr for $18 million.

Pyne Gould says it will be merged into a new entity, Perpetual Asset Management, which will be set up to manage and own cornerstone stakes in major funds, including infrastructure and property, as well as agribusiness over time.

That may include its 20% stake in PGG Wrightson which Pyne Gould says it now intends to retain.

Pyne Gould says it intends applying for a banking licence this year to focus on private individuals and small to medium sized firms.