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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news