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

 


UPDATED: Transpacific to sell NZ unit to Beijing Capital

UPDATED: Transpacific to sell NZ waste unit to Beijing Capital Group for $950M

(Adds description, comment from Beijing Capital starting in fifth paragraph)

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 company with water treatment, waste management, mass transit railway, toll road and property development interests. Its assets are valued at US$21 billion, according to a statement. HSBC managed the Chinese end of the purchase and the New Zealand investment is the company’s first major international acquisition.

“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,” Wang Hao, Beijing Capital’s group chief executive said.

“Beijing Capital Group believes substantial scope exists for cross border cooperation given the technical knowledge base of the Transpacific New Zealand 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,” Hao said.

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. Beijing Capital said the current New Zealand management team will remain in place, with operations continuing as normal.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Three Months On: Quake Reciovery In Kaikōura And Elsewhere

Three months after the magnitude 7.8 earthquake on 14 November, encouraging recovery progress is being made in affected communities. More>>

ALSO:

Jetstar, Qantas For Govt Transport: Government Still In Talks With Air NZ

The government is still negotiating with national carrier Air New Zealand in a cross-agency air travel contract that will add a number of new airlines to the list of approved flyers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news