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- Pacific Current Group (ASX:PAC) announces that its subsidiary, Northern Lights Midco, LLC, has sold its Chess depository interests in GQG Partners (GQG)
- PAC held 119,121,254 shares, equivalent to 4% of GQG’s market capitalisation and nearly 20% of its float
- The total cash proceeds reached A$257.3 million, and settlement is scheduled for March 12, 2024
- PAC last traded at $9.61, at 12:30pm AEDT
Global multi-boutique asset management Pacific Current Group (ASX:PAC) has announced its subsidiary Northern Lights Midco has sold its Chess depository interests (CDIs) in GQG Partners (GQG).
PAC held 119,121,254 shares, equivalent to 4% of GQG’s market capitalisation and nearly 20% of its float.
The underwritten block trade with institutional investors resulted in each GQG share being sold at A$2.16, a 3.6% discount to the previous day’s closing price.
The total cash proceeds reached A$257.3 million, and settlement is scheduled for March 12, 2024.
The GQG investment has been influential for the company, having produced a 99-fold return on PAC’s initial investment of US$2.7 million, with an Internal Rate of Return (IRR) of 137%.
“The Board’s decision to sell PAC’s GQG CDIs concludes what has been a transformational investment for PAC,” PAC CEO and CIO Paul Greenwood said.
“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 decision to divest from GQG aligned with PAC’s longstanding aim of reducing equity market risk exposure and the belief that long-term ownership of listed securities extends beyond its investment mandate.
Proceeds from the share sale will be allocated to debt reduction where feasible, capital return to shareholders, dividends, and new investments.
PAC last traded at $9.61, at 12:30pm AEDT.
