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Pyne Gould Corporation To Seek Banking Licence

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Sept 30 NZPA - Pyne Gould Corporation (PGC) says it is proposing to restructure its operations to become the only New Zealand-owned publicly listed bank.

It had held discussions with the Reserve Bank and would soon submit an application for banking registration, PGC said today.

The company's two existing financial services businesses, Marac and Perpetual , would form the core of the new bank.

The restructuring into a "specialist" bank would enable those businesses to meet better the needs of their customers by offering financial services to both small and medium-sized businesses throughout New Zealand and also specialist personal banking for individuals.

Marac already had many of the features of a bank and Perpetual provided many of the services of a bank, PGC managing director Brian Jolliffe and chairman Sam Maling said.

The new bank would continue to offer most of the current services of both companies, but would not duplicate the broader activities of the other mainstream banks.

The move by PGC to bank status was a continuation of the path the company had been following for several years, of developing specialised financial services operated within prudent financial guidelines, Mr Jolliffe and Mr Maling said.

As part of that process PGC was reviewing ownership of non-banking assets.

For example the board was considering doing a distribution to shareholders, in line with their shareholding, of PGC's stake in PGG Wrightson.

That was likely to be done over time by way of future dividend options to align with imputation credits. Other structural options would be considered.

PGC's stake in PGG Wrightson amounted to 22 percent before PGG Wrightson's recent capital raising.

NZPA WGT mjd gt

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