Money Editor for NZ Herald

Calls for EPIC revamp and board overhaul

An investment company linked to George Kerr's troubled Pyne Gould Corporation is facing pressure from a major shareholder to overhaul its board and let investors sell out.

Investment bank Macquarie has written to all shareholders in the Equity Partners Infrastructure Company No1 calling for the appointment of two new independent directors, a review of the strategic direction of the company and for a liquidity event to enable shareholders to sell their shares for cash.

EPIC is part-owned by a subsidiary of Pyne Gould which has been under investigation by the Financial Markets Authority for related party lending.

A spokesman for Macquarie, which owns about 3 per cent of EPIC and sold the investment to many of its private wealth clients, said it was disappointed with the performance of EPIC and had written the letter to help the company move forward in a more positive way.

EPIC was set up in 2007 and initially raised $94.7 million. Its main investment is in British-based roadside service chain Moto. The company floated at $1 but last month was valued by KordaMentha at 23c to 45c a share.

- NZ Herald

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