A SYDNEY investor has spent $15 million buying units in the Murray Goulburn Unit Trust during the past year.
Nordlys Investments Pty Ltd, an investment firm owned by Rodney and Jennifer Pryor, of Balmain, emerged as a significant investor in the MG Unit Trust on April 17 this year, when it declared it held 10.43 million units, or 5.01 per cent of the trust.
Nordlys spent $9.2 million for the units at an average of 88.6 cents, but would have received a return of about $8.3 million when Murray Goulburn paid an 80 cent distribution to shareholders and unit holders on May 15 from the sale proceeds of the company’s assets to Canadian dairy company Saputo Inc.
Cartoon: Chris Rule
In an announcement to the ASX on July 3, Murray Goulburn indicated unit holders and shareholders could expect to receive an extra 45-50c as net proceeds from the asset sale to Saputo, but much depended on how much left over after two class actions were determined in the courts.
One class action is set to go to trial on February 5, 2020, for an estimated four weeks.
No trial date has been set yet for the second class action.
On separate court action taken by the Australian Competition and Consumer Commission, Murray Goulburn said last month it remained in “confidential mediation discussions”.
During the past six months, Nordlys has spent another $5.8 million buying more than 22 million units at an average of 26.3 cents a unit.
It now holds 15 per cent of the Murray Goulburn units.
Mr Pryor is the sole director of Nordlys Investments and runs the investment operation out of a house in up-market Balmain.
The Weekly Times has been unable to contact the Pryors for comment.
Melbourne investor Robert Petersen has also continued his buying spree in recent months and now held nearly 10 per cent of the Murray Goulburn units.
Mr Petersen said he thought Murray Goulburn would eventually pay out 40-45c as a residual.
“That will be a reasonable return,” he said.
“You can buy them at 32 cents now.”
Mr Petersen said the court cases might take up to three years to reach finality.
“Even if you only get a 20 per cent return on investment after two years, it may not be a very good investment but you’re still in front.” he said.
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