Pyne Gould Corporation - Our History
Throughout our history, Pyne Gould Corporation has continually evolved and adapted to the changing business environment while remaining true to our values of integrity, professionalism and quality.
Pyne Gould Corporation has a long and proud New Zealand history, stretching back to the 1850s, starting with a stock and station business in Canterbury. That original business, through organic growth, acquisitions and mergers, continues today with PGC retaining strong South Island links while developing to become an Australasian asset and wealth management business made up of three core business units:
- Perpetual Group
- Torchlight Investment Group
- Property Group
PGC also retains an 9.5% shareholding in rural services company PGG Wrightson Limited
Pyne Gould Corporation’s shares were originally held by the founding families. Over the years, shares have been offered to staff and acquired by clients and other investors, but descendents of the founding families and connections to the founding families continue to hold substantial shareholdings. In 2004 the shares were listed on the New Zealand Stock Exchange, under the ticker "PGC".
In 2009, a major rights issue of shares resulted in a number of new shareholders joining the company.
1850 to 1900
In the early 1850s, a number of businesses were established in the Canterbury region to service the growing needs of the towns and surrounding rural areas. Among the services undertaken by these “stock and station” businesses was the provision of finance and acting as an agent for various transactions undertaken on behalf of their customers.
1900 to 1950
Three of the stock and station businesses came together in 1919 to form Pyne Gould Guinness (PGG). As a result of the merger PGG became a substantial farm financier, wool broker, agent and attorney for investors, and an agent and attorney for the London and Lancashire Insurance Company.
Acting as a financial agent for farm investors evolved to attorneyships and the administration of deceased estates. In 1934, a special private members bill was introduced to Parliament which allowed PGG to establish a Trust Department.
1950 to 1975
In 1957 the company issued 50,000 new £1 shares, the first cash issue since the company was formed in 1919.
The finance business increased in 1959 with the acquisition of Finance & Discounts Ltd (F&D), a lender to motor vehicle dealers and purchasers, established in Christchurch in 1936.
1975 to today
In 1987, following a corporate restructure, a new holding company was formed – Pyne Gould Corporation Ltd, with Pyne Gould Guinness becoming a wholly owned subsidiary.
Also in that year the Trust Department of PGG was split into a separate company – PGG Trust Ltd. Another private member’s bill was passed in 1989 which authorised PGG Trust Ltd to become a statutory trustee company. In 1996 Pyne Gould Corporation acquired AMP Perpetual Trustees which had been established in 1884 in Dunedin. In 1998 PGG Trust Ltd was amalgamated with AMP Perpetual Trust to form Perpetual Trust Ltd.
In 1988 Pyne Gould Corporation acquired a 40% shareholding in Reid Farmers; a Dunedin based rural servicing company. In 2001 Pyne Gould Corporation sold Pyne Gould Guinness to Reid Farmers, and the merged company traded as Pyne Gould Guinness. In 2005 Pyne Gould Corporation facilitated the merger of Pyne Gould Guinness with Wrightson to form PGG Wrightson. Pyne Gould Corporation continues to hold a large minority shareholding.
Allied Finance Ltd (Allied), an Auckland based company, was acquired in 1992. Allied had started operations on Auckland’s North Shore in 1952 as a vehicle rental firm, later expanding into the provision of motor vehicle lending. F&D was merged into Allied in 2000. In 2001 Pyne Gould Corporation acquired MARAC Finance Ltd, an Auckland based finance company, and Frontline Finance Ltd of Dunedin. In 2003 MARAC and Frontline were amalgamated into Allied, and Allied changed its name to MARAC Finance Ltd (MARAC).
In 2009 a new group company, Perpetual Asset Management Ltd, was formed. This company manages and owns cornerstone shareholdings in major funds, focussed on infrastructure and real estate credit assets. This business was enhanced by the acquisition of Equity Partners Asset Management Ltd, a funds management company.
In 2009, the company undertook a major capital raising of $273m to strengthen the balance sheet and support the growth and expansion of the operating businesses.
In 2011, the financial service businesses of MARAC, Canterbury Building Society and Southern Cross Building Society were merged. A new holding company, Building Society Holdings Limited (BSHL) was established to own these businesses.
On 18 May 2011, PGC shareholders, with a 99.72% vote, approved the distribution of PGC’s 72% holding in BSHL. The distribution of the shares and the cancellation of a proportion of PGC shares took place on 30 May. With holding statements are being sent to shareholders no later than 7 June.
BSHL is now a separate, independent company.
About Perpetual Group
Perpetual Group provides a full range of wealth management services including financial advice, investment management and trustee services to mainstream clients as well as institutional clients across the New Zealand market. The Perpetual Group encompasses:
- Perpetual Portfolio Management (PPM)
- Perpetual Asset Management (PAM)
- And Perpetual Trust Limited (PT)
For more information about Perpetual, see www.perpetual.co.nz.
About Torchlight Investment Group
Torchlight Investment Group (TIG) manages and co-invests in proprietary funds focused on non-traditional investment opportunities. The funds are aimed at high net worth investors and institutions across Australasia. TIG’s two specialist funds are Equity Partners Infrastructure Company No. 1 (EPIC) and the Torchlight Fund No. 1 (Torchlight Fund No. 1). To find out more about EPIC click here.
About Property Group
Property Group is responsible for managing the PGC Group’s property assets. The Property Group comprises Real Estate Credit Limited (RECL) and Property Assets Limited (PAL).
About PGG Wrightson
PGG Wrightson is one of New Zealand’s largest nationwide providers to the agricultural sector and is listed on the NZX. PGG Wrightson's business is split into three areas: rural services, financial services and technology services.
- The rural services business is an extensive network of branches, representatives and rural supplies stores which provide marketing services to farmer clients for farm outputs (such as livestock, wool, grain, seed), as well as supplying farm operating inputs (such as seed, animal feed, irrigation equipment).
- The technology services business has operations in Australia and South America and specialises in seed and grain, nutrition, animal health, training and consultancy, again for the rural sector.
For more information about PGG Wrightson, see www.pggwrightson.co.nz.
Heartland New Zealand Limited
PGC holds a 6% shareholding in Heartland which comprises MARAC Finance, Canterbury Building Society and Southern Cross Building Society.