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

 


Any bolt-on acquisitions at NZX to be less than $5 million

Any bolt-on acquisitions at NZX to be less than $5 million, Bennett says

May 3 (BusinessDesk) – NZX wants to boost its exposure to agriculture and commodities and the company is on the hunt for bolt-on acquisitions less than $5 million, says chief executive Tim Bennett.

“We continue to look for small add-on acquisitions,” Bennett told shareholders at their annual meeting in Wellington. “Ultimately, of course, we would like to offer a broad range of soft commodity risk management products.”

Results have been mixed to date. Clear Grain Exchanges in Australia and the NZX Dairy Futures had “mixed results” over the past six to 12 months.

Bennett says the Grain Exchange’s performance was hurt by the dynamic of the harvest, which was smaller, while prices were higher earlier in the season.

The Dairy Futures haven’t sparked yet. Some potential US investors face regulation at home preventing them from investing in the market, Bennett said.

“There’s a lot of positioning in the physical market but we have not seen that flow through into the futures market,” he told BusinessDesk after the meeting.

None of that has dissuaded NZX from betting on the sector for growth.

“We continue to believe the growth upside is substantial,” Bennett said at the meeting. “We are therefore spending a disproportionate amount of resources in growing these businesses.”

Last week, the stock exchange announced plans to extend its dairy futures trading hours to capture the Northern Hemisphere trading session. It offers futures on whole milk powder, skim milk powder and anhydrous milk fat, and options on whole milk powder. There were last around 10 offers to buy or sell the five whole milk futures being bid.

The firm's shares fell 0.8 percent to $1.33 on the NZX today and have gained 12 percent this year.

NZX today said 2013 is the last year in which it will be tied to a formula of cents per share growth in dividends, and payments in 2014 will depend on conditions at the time.

Sales in the first quarter rose 4.3 percent to $14.3 million, led by gains in securities clearing and market operations, up 23 percent to $1 million and 26 percent to $3.05 million respectively.

Sales of securities information fell 8 percent to $2.1 million and sales of Agri information declined 8 percent to $2.7 million, which it said reflected a drop in rural advertising caused by drought. Listing revenue rose 4 percent to $2.3 million.

Total trade in the cash market rose 14 percent to 232,141 trades in the first quarter from a year earlier, while the value of trading surged 54 percent to $10.1 billion.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news