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

 


Beijing Capital Group acquires Transpacific New Zealand

Beijing Capital Group acquires New Zealand’s leading integrated waste management business with the acquisition of Transpacific New Zealand

The Beijing Capital Group (“BCG”), a long standing member of China’s Top 500 Enterprises, is one of China’s leading State owned infrastructure enterprises with specialist expertise in water treatment, waste management, mass transit railway and toll roads. In addition, BCG is one of China’s most prominent real estate developers. BCG had in December 2013 total assets and revenues exceeding US$21 billion and US$3.7 billion respectively and employs around 20,000 people across its regional and international businesses.

BCG has entered into an agreement with Transpacific Industries Group Ltd (ASX:TPI) to acquire their New Zealand business, Transpacific New Zealand (TPI NZ), for NZ$950 million.

Mr. Wang Hao, Group CEO and Deputy Chairman of BCG, said that, “BCG’s acquisition of TPI NZ, which is its first ever investment in New Zealand and major acquisition outside China, represents a strategic investment into the country’s integrated waste management sector. The investment carries significant and mutual technical and commercial benefits for both companies and will open further strong commercial links between the New Zealand and Chinese markets. BCG believes substantial scope exists for cross border co-operation given the technical knowledge base of TPI NZ Management in areas such as landfill and local area environment management and the extensive scale of waste-sector investment opportunities in China and New Zealand.”

BCG operates major landfill in China and is a recognised leader in China’s solid waste treatment industry. It is also a key investor in major transport infrastructure around Beijing and one of the largest water companies in China, with a total water treatment capacity of nearly 15 million tons per day, serving a population of 30 million.

Completion of the sale is expected to occur by the end of June 2014, subject to the satisfaction of a small number of customary conditions precedent, including obtaining consent from the New Zealand Overseas Investment Office and Chinese regulatory approvals. These processes have commenced.

TPI NZ is the leading waste management company in New Zealand, with revenue of approximately NZ$369 million and earnings of approximately NZ$107 million in the 2013 financial year. TPI NZ has an established national network of vertically integrated local waste systems. The company has around 1,100 employees, 800 vehicles, 29 refuse transfer stations and 5 landfills.

The Management team of TPI NZ will remain in place with the company continuing to operate as usual and focusing on safety and quality waste solutions.

HSBC acted as financial advisor to BCG. Allens, Russell McVeagh and Jun He acted as joint legal counsel to BCG.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Insurance: EQC To Double Payout, Scrap Contents Insurance

New Zealand’s Earthquake Commission may double its payout amount, scrap contents insurance and process claims through private insurers under the government’s long-running review of funding and management of the state-run earthquake insurer. More>>

ALSO:

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

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:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news