Published 6 September 2012
Investment Research Group Ltd has sold the Auckland advisory business of IRG Equity Investment Advisors Ltd to Forsyth Barr Ltd as it progresses towards becoming a listed shell.
IRG said in June it would sell its businesses and become a listed shell and had now sold most of IRG Equity.
Managing director Brent King said 2 of its investment advisors would transfer to Forsyth Barr and clients would be encouraged to transfer their account to Forsyth Barr. He said payments after the initial deposit would be based on performance. IRG will continue to operate the remains of IRG Equity Investment Advisors, MoneyOnline & its media products, using the remaining 3 advisors.
IRG’s 55% shareholder since May last year, GA Sego Ltd – a New Zealand-registered joint-venture company owned by Tim Munro-Keene & the Bugo family interests from Kuching in Sarawak – has agreed to advance $750,000 to IRG as a bridging loan. NZX granted IRG a waiver on Tuesday of the requirement to gain shareholder approval as this was a related-party transaction.
The refinancing is to enable IRG to repay part of the loan from its bank, which required its position to be enhanced before it would consider releasing assets held as security for the proposed sale. IRG chairman Marvin Yee said said the refinancing would give the company financial stability during the selldown.
IRG sold its Tauranga office last month to one of its investment advisors, Andrew Parkinson, who has renamed it Bay Financial Partners Ltd.
16 June 2011: NZX-listed IRG trades on despite negative equity
15 June 2011: IRG buys Sharechat website
11 May 2011: IRG shareholders approve handover to GA Sego
24 December 2010: IRG sells investment report business back to McEwen
15 September 2010: Latest count turns King’s IRG from profit to loss
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Attribution: Company releases, story written by Bob Dey for the Bob Dey Property Report.