Retirement cancelled: Sir Ron is back 15:34 16/11/2011Sir Ron...

Retirement cancelled: Sir Ron is back
15:34 16/11/2011
Sir Ron Brierley, the 74-year old corporate raider, last night finalised a deal to take a controlling stake and the chairmanship of listed investment vehicle India Equities Fund.

Sir Ron's company Siblow will be issued with 103 million India Equities shares at 8 Australian cents per share which, subject to shareholder approval, will see him emerge with more than 50 per cent of the company.

India Equities is sitting on about A$7 million ($9.2 million) in cash. But it also is sitting on attractive tax losses worth nearly A$8m so Brierley, assuming he keeps the business as an investment vehicle, may be able to enjoy a share a tax-free profit up to about A$7.8m.

The recapitalisation of INE will see it acquire A$8m in a ''portfolio of shares'' from Siblow including stakes in Copper Strike, Trinity Group, ING Community Living Group, australia Pharmaceutical Industries and Trogan Equity.

To date, the vehicle has been controlled by Wilson Asset Management's boss Geoff Wilson with a stake of about 20 per cent.

But in July Sir Ron, who recently retired from Guinness Peat Group, emerged on the India Equities register with a handwritten substantial shareholder notice of about 5 per cent. He bought that stake at an average price of 4.7 cents a share, below net tangible assets of 6 cents a share. He has since increased his stake to about 14 per cent.

Last year, India shareholders rejected a proposed 5.75 cents-a-share capital return and winding-up by the company, which was opposed by Mr Wilson.

Mr Wilson rolled the incumbent board last year, installing his own directors. It's understood Mr Brierley met with Mr Wilson last week to discuss the deal.

INE chairman Gabriel Radzyminski said directors have commissioned an independent expert's report into the company.

Geoff Wilson said: "Doing a placement at a 33 per cent premium to net tangible assets is in shareholder interests. I take it by his actions that Sir Ron is happy with how the new board is performing."

- Sydney Morning Herald