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Perpetual to unlock value in Soul Patts

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AAP

November 26 2012, 7:24PM

SYDNEY, Nov 26 AAP - Fund manager Perpetual Investments is to co-operate with MH Carnegie & Co by investing in the venture capital company to help unlock as much as $1 billion of value from unwinding the cross shareholding between Brickworks and Washington H Soul Pattinson.

Soul Pattinsons owns 44.5 per cent of Brickworks and Brickworks owns 42.8 per cent of Soul Pattison.

Analysts say the cross holding obscures the true value of Soul Pattinson's value including its majority holding in coal miner New Hope Corporation.

"The parties have agreed to co-operate to pursue strategic options with the goal of unlocking additional shareholder value in Brickworks Limited (BKW) and Washington H Soul Pattinson (SOL)," the two investors said in a statement on Monday.

As a result of the agreement, MH Carnegie has declared an interest in shares controlled by Perpetual Investments in Brickworks and Soul Pattinson in accordance with the Corporations Act.

In addition, Perpetual Investments has granted a call option (right to buy) to MH Carneigie over a portion of approximately 5 per cent of Perpetual Investments total holding in Brickworks and Soul Pattinson, which may be exercised if the value of the shares meets a defined hurdle rate over the next two years.

The two investors said that would explore options that could be presented to Soul Pattinson and Brickworks' shareholders, with the view of realising value.

They said this was a new action designed to unlock value for all shareholders of the two companies.

in 2011 Perpetual unsuccessfully pressed to appoint its own candidate to the tighly held board of Soul Pattinson.