Rates round-up: January 23

Name suppression lifted from two SCF accused; PGC investors offered a bargain.

Monday, 23 January 2012

by Niko Kloeten

Name suppression has been lifted for two of the five people facing Serious Fraud Office charges relating to the collapse of South Canterbury Finance.

Last Monday in the Timaru District Court Judge Joanna Maze allowed name suppression to continue for the five accused until their next appearance in the court on February 13.

However, on Friday the judge granted an application by two of the men, former South Canterbury Finance chief financial officer Graeme Brown and Timaru chartered accountant Terry Hutton, to have name their suppression removed.

Brown faces one charge of false accounting, while Hutton, who used to work for Allan Hubbard's firm Hubbard Churcher, has been charged with false accounting and creating a false entry.

Hutton's lawyer Jonathan Eaton told media his client had sought to have his name suppression lifted due to speculation about the identities of the five facing charges.

The other three accused face a total of 18 charges, including entering the deposit guarantee scheme by deception, breaching the guarantee and failing to declare related-party transactions.

PGC investors told of chance for bargain

Investors in Pyne Gould Corporation could sell their shares now and buy them back later for cheaper, according to the company's independent directors.

The opportunity has arisen as a result of the takeover bid by NBR Rich Lister George Kerr's vehicle Australasian Equity Partners No. 1 LP (AEP).

According to PGC chairman Bryan Mogridge and independent director Bruce Irvine, AEP has managed the 50% target required for a takeover but is unlikely to reach the 90% mark for compulsory acquisition of the remaining shares.

The share price could drop, meaning shareholders could sell their shares at the 37c being offered by AEP and buy them back later, Mogridge and Irvine said in a statement.

"Naturally, there is risk in this strategy but we felt it important to point out the opportunity to shareholders and advise you that we as the independent directors will consider our position in this regard and may decide to sell some or all of our shares into the AEP offer and then repurchase at a later date.

"Once again we must reiterate that before you take any action you should discuss the situation with your advisor and recognise that any decision to act is yours alone."

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