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

 

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

"Don’t Give Up":
End Of Kick-Start Hits KiwiSaver Enrolments

ANZ said new enrolments for the ANZ KiwiSaver Scheme had dropped by more than 50% since the Government announced an immediate end to the $1,000 KiwiSaver kick-start incentive in the Budget last month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news