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

 

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Half Empty: Dairy Prices Drop To Lowest Since August 2009

Dairy product prices fell to the lowest level in more than five years in the latest GlobalDairyTrade auction, led by declines in butter milk powder and whole milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news