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


Transpacific to sell NZ unit to Beijing Capital for $950 mln

Transpacific to sell NZ waste management to Beijing Capital Group for $950 mln

By Suze Metherell

March 3 (BusinessDesk) – Transpacific Industries Group, the Australian waste management company, agreed to sell its New Zealand business to Beijing Capital Group for $950 million, raising cash to repay debt.

The Queensland-based company hired Deutsche Bank in October to advise on the sale of its New Zealand unit, to focus on its more profitable Australian business. It wrote down the value of the kiwi business by A$188 million in 2011 after acquiring the operations for $870 million in 2006.

The company’s decision to scale back its business comes after a debt-fuelled expansion before the global financial crisis, culminating in 2008 with the A$1.25 billion acquisition of rival Cleanaway to create Australasia’s biggest waste disposal firm.

“The sale of our New Zealand business gives Transpacific increased financial flexibility,” said Robert Boucher, the company’s chief executive. “Beijing Capital is focused on investing in and developing the New Zealand business.”

Beijing Capital is a Chinese state-owned specialist in water treatment, waste management, mass transit railways and toll roads, as well as one of China’s most prominent real estate developers. Its assets are valued at US$21 billion.

Transpacific said proceeds from the sale will be used to redeem its Step-Up Preference Securities, refinance debt and fund future investments. The company will consider the resumption of dividends in the near future, it said.

The dual-listed shares rarely trade on the NZX and were unchanged at $1.40, having declined 84 percent in the past 12 months. On the ASX they last traded at A$1.175, and have gained 29 percent in the past year.

The deal is expected to be completed mid-year, subject to Overseas Investment Office and Chinese regulatory approvals.


© Scoop Media

Business Headlines | Sci-Tech Headlines


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