by David Chaplin
Grahame Evans, PIS managing director, said the Newpark purchase was approved in four of the five voting stages necessary for the deal to proceed.
“All five votes were needed,” Evans said.
He said only the B-class PIS shareholders rejected the Newpark buyout with 73% voting in favour of the purchase – just shy of the 75% majority required for approval.
However, in a re-structured deal Ausiwi, the New Zealand wholly-owned subsidiary of Professional Investment Holdings (Australia), has bought 25% of Newpark. Ausiwi holds just under 50% of PIS NZ.
Under the original agreement, Newpark was to be bought in total and merged with Professional Investment Holdings (NZ) with the joint group to be headed by David Keys, PIS NZ head, leaving Newpark owner, Darren Gannon, head of risk.
Gannon told Good Returns under the new deal he will remain head of Newpark and also retain a “substantial chunk” of ownership. He said Newpark advisers would also be able to secure shares in the group.
“PIS also has an option to buy a further share of Newpark in about 18 months,” he said. “I'm very happy with the new arrangement. I will still be running Newpark and the group will also get the corporate input necessary in a new compliance-driven environment.”
Evans said despite difficult market conditions the Newpark shareholding offered good value for both parties.
“We see the current global financial crisis as an opportunity to increase our market share. We firmly believe that growth by acquisition remains a sound strategy and it is a key objective for the group in 2009,” he said in a statement.
“The combined expertise of the global PIS group and Newpark will produce significant benefits and deliver the size and scale necessary to consolidate the group as the major financial advisory services provider in New Zealand.”
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