Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Envirowaste's HK buyer keen on more New Zealand assets

Envirowaste's HK buyer keen on more New Zealand assets

Jan. 16 (BusinessDesk) - Billionaire Li Ka-shing's Cheung Kong Infrastructure Holdings (CKI) is describing New Zealand as a core investment destination after it beefed up its presence with $501 million purchase of EnviroWaste.

The biggest user of waste material by mass in Hong Kong is looking to leverage its expertise in materials handling as it expands into waste management, while collecting a steady income from EnviroWaste.

"The operations will be able to share their expertise, and explore opportunities of synergy," managing director Kam Hing Lam said in a statement on the CKI website.

The company, which still has HK$5 billion of cash on hand after three large acquisitions in the past four months, says New Zealand has always been one of its core markets of interest.

"We are pleased with our existing investment in Wellington Electricity Lines Ltd, and have found that the country's legal system and stable political condition provide a very efficient business environment," Kam said.

In 2008, Vector sold its Wellington electricity network to CKI for $785 million.

EnviroWaste is one of only two vertically integrated waste collection and disposal companies operating throughout New Zealand.

Its 360 hectare landfill at Hampton Downs accounts for about 30 percent of annual landfill volumes in greater Auckland and is the country's largest landfill measured by remaining capacity.

"The rate of increase in waste is fundamentally linked to growth in population," Kam said.

He said Hampton Downs was poised to reap benefits as other major landfills serving Auckland approached the ends of their lives.

EnviroWaste employs about 500 people and operates 14 transfer stations, three landfills and a fleet of more than 290 vehicles nationwide.

The investment would deliver a steady income and stable cashflow, CKI said.
The vendor, Australian private equity company Ironbridge, bought the business for $259 million in 2007 and added 17 bolt-on acquisitions.

The sale price is ten times earnings before interest, tax, depreciation and amortisation.

Between 2009 and 2012 EnviroWaste achieved double-digit growth in revenue and earnings before interest, tax, depreciation and amortisation, CKI said.
"It is a quality investment," Kam said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Errors Found: Electricity Authority Dumps Transmission Pricing Modelling

The Electricity Authority is ditching the cost-benefit analysis at the heart of its controversial attempt to find a new way to divide up costs for the national grid after finding an expanding range of serious computational errors in the work by Australian consultancy Oakley Greenwood. More>>

ALSO:

New Record: Migrant Arrivals At 129,500 A Year

Annual net migration has been steadily increasing since 2012. "This was mainly due to the rising number of migrant arrivals to New Zealand," population statistics senior manager Peter Dolan said. "Fewer migrant departures also contributed to the increase in net migration." More>>

ALSO:

Launched: NASA's Super Pressure Balloon Takes Flight From NZ

NASA successfully launched its football-stadium-sized, heavy-lift super pressure balloon (SPB) from Wanaka, New Zealand, at10:50 a.m. Tuesday, April 25 (6:50 p.m. April 24 in U.S. Eastern Time), on a mission designed to run 100 or more days floating at 110,000 feet (33.5 km) about the globe in the southern hemisphere's mid-latitude band. More>>

ALSO:

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news