July 4, 2007

ECan welcomes final sale of Target Pest Enterprises assets

Environment Canterbury, sole shareholder of the company Target Pest Enterprises Limited (TPE), today welcomed the announcement that receivers have finalised the selling-up of TPE’s assets.

The receivers had been appointed in May to administer the affairs of the council-controlled trading organisation. Environment Canterbury had lost confidence in Target Pest Enterprises’ ability to meet its business targets. Parts of the business have been progressively sold over the past month and the last remaining major division, the Canterbury pest control operation, was sold to Excell Corporation Ltd (http://www.excellcorp.co.nz) today. Excell provides a range of maintenance and management services including environmental, water, drainage and roading services.

Proceeds from the disposals will be returned to the company’s bankers to offset against funds borrowed. Environment Canterbury, the sole shareholder, will now write off its past investments and loans to Target Pest Enterprises to the value of $2.2 million. The cost of the write-off will be met from Environment Canterbury’s reserves.

“The sale to Excell Corporation ensures that we still have the capability in the region to manage major pests, particularly the threat from bovine Tb and also the threat from expanding rabbit populations,” said Sir Kerry Burke, Chairman of Environment Canterbury. “Smaller parts of the company were parcelled-up by the receivers and sold progressively over the last few weeks”.

“The receivership was in the best interests of ratepayers as it became clear that Target Pest Enterprises were not able to meet their business objectives. We wish the new owners well and we thank staff and other stakeholders for their patience during this very difficult process of receivership”, said Sir Kerry.

ENDS

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