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

 


Billion dollar Japanese investment as Hart sells down CHH

Billion dollar Japanese investment as Hart sells down Carter Holt

April 26 (BusinessDesk) – One of the largest single Japanese investments in the New Zealand economy is occurring with the sale of Carter Holt Harvey’s pulp and paper and packaging businesses for $1.037 billion.

Tokyo Stock Exchange-listed packaging giant Oji Holdings Corp will take a 60 percent share of CHH’s PPP assets, comprising some of New Zealand’s largest industrial energy and forest products users, the Tasman and Kinleith pulp and paper mills, and a large Australasian packaging enterprise. Oji already owns the Pan Pac pulp and paper mill, near Napier.

Innovation Network Corp of Japan, a government-backed innovation agency that attracts private sector investment to “promote innovation and enhance the value of businesses in Japan”, makes up the remaining 40 percent joint venture vehicle that will make the investment.

The deal is subject to regulatory approvals and is expected to complete in the second half of this year.

CHH is 100 percent-owned by New Zealand’s only billionaire, Graeme Hart, owner of the world’s largest packaging business, US-based Reynolds Group, which is under pressure to reduce its outstanding US$18 billion issuings of junk-rated corporate bonds.

Hart had previously tried to sell the CHH PPP businesses in 2012 and was forced to refinance $1.45 billion in debt when no buyer emerged at the time.

CHH’s building supplies business remains for sale after taking combined charges in 2011 and 2012 of $393.8 million in impairments on its underperforming timber and plywood businesses and falling into negative equity.

In a joint statement, Oji and local PPP chief executive Jon Ryder talked up the prospects for driving greater value from the former CHH portfolio and Oji’s understanding of New Zealand conditions through investment here since 1971. Oji spent $180 million in recent forest land purchases and upgrade investments for the Pan Pac mill, which were completed in 2012.

With annual turnover of US$13 billion, Oji operates globally and has interests in Canada, China, Germany and Brazil, among others. INCJ’s investment mandate gives it a total investment capacity across a range of opportunities of approximately US$20 billion.

The Oji/INCJ purchase will concentrate ownership in the sector because of Oji’s interest in Pan Pac. The only major players left in the sector will be the Scandinavian companies Norske Skog, which makes pulp and paper on the Kawerau site where CHH’s Tasman kraft pulp and paper mill also operates, and SCA, which makes tissue papers, also on the Tasman site.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news