GPG

[tboonip1]

Guinness Peat Selling for less than current cash
get business for free


Guinness Peat Group Plc (LSE:GPG, co-listed NZX, ASX)

Investment Thesis
- Company in process of liquidation and returning cash to shareholders
- The aggregate value of the component parts are greater than the current market capitalization
- Catalyst: 23 May 2013 Shareholder meeting outline further capital management initiative, in addition to Quantum Strategic Partners recently taking a 9% stake, with Waldemar Szlezak, managing director of private equity group of Soros Fund Management sitting on the board of directors.

Two components of value:
1) Investments portfolio in holding company (no debt)—being liquidate.
2) Coats plc (shareholders will end up with just Coats after all liquidation and distribution

Risks
- Complications related to pension schemes and asset sale cause delays, decreasing the present value.
- Coats Plc go bankrupt if cannot refinance debt (majority of borrowing due within 2-5 years)


Major shareholders



Insider buying: Mr. Rob Campbell, Chairman, recently brought more shares, bringing total to 505,043 shares.
Sir Ron Brierley, Non0Executive director, also hold 2.11% of shares outstanding.