Guinness Peat Group sells AWM stake
International strategic investment company Guinness Peat Group has sold its 19.4 per cent stake in ASX-listed wealth manager Australian Wealth Management, realising a profit of approximately $172 million.
The proceeds of the sale, which took place via an institutional placement at $2.43 per share, are “in the form of cash”, according to GPG director Gary Weiss, and will be “utilised in GPG’s ongoing business”.
“We will reinvest the proceeds in investment opportunities where GPG can be more actively involved in enhancing value,” Weiss said.
He added that the group “believed completion of the merger between AWM and Select and the release of AWM’s 2007 half-year results was an appropriate time” to divest its shareholding of AWM.
GPG’s two representatives on the GPG board, Michael Jefferies and Graeme Cureton, are to resign following the completion of the sale.
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