Locally listed hedge-fund management company Regent Pacific Group has sold its interest in Pioneer Industries International (Holdings), ending a four-year battle between the two companies.
Regent chairman Peter Everington confirmed it sold 86 million shares equivalent to 17.14 per cent of Pioneer for 77.5 cents per share to unknown third parties.
Mr Everington confirmed Regent had lost about $38.75 million on the deal but added the losses had been reduced by hedging for its Pioneer exposure by shorting Bangkok Bank, the Thai SET Index and the Thai baht.
Regent became Pioneer's major shareholder four years ago, claiming the company was badly run and trading at a 52 per cent discount to its net asset value (NAV).
Pioneer's principal asset was a stake in Bangkok Bank which Regent urged the management to sell in the hope it would bring the share price and the NAV to near parity.
Mr Everington said Pioneer's share price had dropped more than 80 per cent compared with Regent's average entry price of $4.30.
He said Regent decided to dump the stock as it was disappointed with Pioneer's poor corporate governance.