GPG meeting hush-hush

Guinness Peat Group chairman Sir Ron Brierley arrives at the AMP building. Photo / Greg Bowker

The contents of a secret meeting held between Sir Ron Brierley and the major New Zealand shareholders of Guinness Peat Group are to be kept under wraps after investors signed a confidentiality agreement.

Brierley, the chairman of GPG, yesterday met representatives of around 10 local fund managers and the New Zealand Shareholders Association at the offices of AMP in Auckland to talk over concerns about a proposed plan to split off the Australian assets of GPG and list them separately.

Institutions, thought to be led by AMP and the New Zealand Superannuation Fund, are unhappy with the proposal because they say it fails to deliver on a promise made by Brierley more than two years ago to deliver a value return to shareholders.

Those at the meeting said it was cordial but declined to talk further on what was discussed after all the parties agreed to sign a confidentiality agreement.

The Business Herald understands the investors want to give Brierley a chance to go back and present their recommendations to the board.

A short deadline has been given to GPG to respond to the concerns.

GPG said in June it intended to appoint up to three independent directors to its board as soon as practical but has so far failed to come up with any possible contenders. GPG shares closed down 1c at 66c yesterday.