Gary Weiss says GPG has 'a range of opportunities' for reinvesting its AWM profit.
Gary Weiss says GPG has "a range of opportunities" for reinvesting its AWM profit.
Investment company Guinness Peat Group has booked a profit of nearly $200 million after selling its stake in Australian Wealth Management so it can better invest the money elsewhere.
GPG sold its 19.4 per
cent stake in the ASX-listed company to institutional investors for A$2.43 ($2.73) a share for a total of A$267 million, giving GPG a profit of A$172 million ($193 million) in the two years it has held the stock.
"We believe it's an appropriate time for us to realise our investment with a view to employing the funds elsewhere where we can more directly enhance value," said GPG director Gary Weiss. "It's not a reflection on AWM."
Weiss declined to say how the money would be reinvested. "We've got a range of opportunities before us at the moment and we'll just see what develops over time."
Shares in AWM - a provider of investment management products and services - closed at A$2.51 on the ASX yesterday. GPG closed up 2c at $2.30.
GPG acquired its stake in the company when it was spun off from insurer Tower, in which GPG is a cornerstone shareholder, when the shares were issued at A$1 each.
Tower has since been split into separate Australian and New Zealand businesses.
Weiss said GPG was holding on to its stakes in both companies.
