19th Apr 2007 07:30
Guinness Peat Group PLC19 April 2007 Guinness Peat Group plc Announcement Sale of Stake in Australian Wealth Management Limited ("AWM") Guinness Peat Group plc ("GPG") announces that it sold yesterday its entire19.4% stake in ASX-listed company, Australian Wealth Management Limited (ASXcode : AUW). The sale was undertaken via an institutional placement at a priceof A$2.435 (£1.02) per share and underwritten by UBS AG. The sale realised aprofit of approximately A$172 million (£71.8 million). The value of AWM's gross assets at 31 December 2006 was A$808 million (£337.5million), and in the six month period to 31 December 2006 AWM's profits wereA$26 million (£10.8 million). GPG is a strategic investment company. The sale proceeds are in the form ofcash which will be utilised in GPG's ongoing business. Commenting on the sale by GPG, Dr Gary Weiss, GPG Director, said : "Following completion of the merger between AWM and Select and the release ofAWM's 2007 half year results, we believe that it is an appropriate time for GPGto divest its shareholding and reinvest the proceeds in investment opportunitieswhere GPG can be more actively involved in enhancing value". GPG has advised AWM that the two GPG representatives on its Board, MichaelJefferies and Graeme Cureton, will resign following completion of the sale. J R RussellCompany SecretaryTel : +44 207 484 3370 19 April 2007 Contact : B A Nixon +44 207 484 3370 Dr G H Weiss +61 2 8298 4300 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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