GQG shares dip as finance stocks lead ASX surge
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More news: Shares in GQG Partners dipped after asset manager Pacific Current Group sold its 4% stake in the investment boutique.
GQG shares were trading 1.5% lower at $2.21 by 12:50pm AEDT.
GQG's decline defied gains in the wider finance sector, which is currently the highest performing segment on the ASX, up 1.73% at 12:50pm AEDT. The ASX 200 also reached an intra-day record high at 7,838.4 today.
Pacific Current sells GQG stake in $257.3m block trade
The news: Asset manager Pacific Current Group has sold its 4% stake in listed investment boutique GQG for $257.3 million in a discounted block trade deal with institutional investors.
The numbers: Pacific Current's sale of 119.1 million chess depository interests represented approximately 4% of GQG's market capitalisation and nearly 20% of the float.
The sale price of $2.16 per GQG share represented a 3.6% discount to Thursday's close of $2.24, realising cash proceeds of $257.3 million.
Pacific Current said its shareholding in GQG has been "exceptionally successful", producing a 99-fold return on its initial USD2.7 million ($4.1 million) investment and an internal rate of return of 137%.
The context: Pacific Current said its decision to sell its GQG shares stems from its long-stated desire to reduce equity market risk exposure in its portfolio, noting that owning listed securities over the long-term is beyond its investment mandate.
Proceeds of the sale, which is expected to be settled on Tuesday, will be used to fund a combination of debt reduction, capital return to shareholders, dividends, and/or new investments.
What they said: Pacific Current's CEO and chief investment officer Paul Greenwood said: "The board's decision to sell [Pacific Current's] GQG CDIs concludes what has been a transformational investment for [Pacific Current]. We are honoured to have been a partner with one of the most exceptional boutiques I have come across in my 35 years in this industry. Naturally, we wish them continued success".
The source: ASX announcement
