Guinness Peat Group plc, a UK based Investment group, announced that it is planning to spin off its Australian business. GPG said that it will demerge GPG Australia from the GPG group in a move to create a new company GPG Australia Ltd. The company said that it has decided to take this move to ensure improved returns to its shareholders.

"This proposal will create an exciting and regionally focused activist investment company in Australia with the entrepreneurial flair to create value for shareholders," said Ron Brierley, head of GPG.

GPG said today in a statement that the new company GPG Australia Ltd will have a net asset value of about $A450 million.

The net asset value is based on its portfolio value in April this year. GPG said that the new company will be listed on both the Australian and New Zealand exchanges.

GPG will initially retain a 20% stake in the new company. The company said that its current shareholders will own shares in both the ventures. GPG said that it will retain the UK and New Zealand investment portfolios. The company also said that it will continue its traditional value focused activist investment approach.