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

 


SCA’s NZ assets make money in 2013 after many restructures

SCA’s NZ assets make money in 2013 after many restructures

By Pam Graham

July 9 (BusinessDesk) – The New Zealand toilet paper, nappy and tampon business Sweden’s Svenska Cellulosa Aktiebolaget (SCA) has owned in various structures for the past decade is now making profits on annual turnover of about $250 million.

The business SCA purchased from Carter Holt Harvey for $1 billion in 2004 to give it a leading position in Australasia is now Asaleo Care, which debuted on the ASX on July 3.

The float allowed private equity firm Pacific Equity Partnership to exit a three-year-long relationship with SCA, which retains 32.5 percent. At the A$1.65 initial public offer price the float was worth A$656 million and the business was valued at A$996 million.

There wasn’t much information in the Australian prospectus about the large New Zealand business but accounts for PEPSCANZ Ltd filed to the New Zealand Companies Office reveal profits and no more big write-offs by the maker of Sorbent and Purex toilet paper, Treasures nappies and Libra tampons.

PEPSCANZ reported a bottom line profit of $27.47 million in the year to Dec. 31, 2013 compared to a loss of $44.57 million the previous year when there was an $82.3 million writedown. Turnover was $247.6 million in 2013, down from $255.5 million in 2012.

In 2011 SCA put its Australian and New Zealand assets into a partnership with PEP to “enable more efficient financing” and “increase the pace of development” of the business.

SCA received approximately SEK 3,200 million Swedish Krona for half the business and swallowed a 654 million krona writedown. There were also years of writedowns in the accounts of the New Zealand unit.

Asaleo shares debuted at a small premium to the offer price and were at A$1.76 on Wednesday.

The paper business has a long history in New Zealand, starting as Caxton in the 1890s and becoming part of Carter Holt, which went on to purchase Bowater’s tissue assets in Australia.

The company’s Kawerau paper mill was an advanced paper mill in its early days.

It has a capacity of approximately 58,750 tonnes per annum on its two paper machines, and about 62,600 tonnes per annum on its eight converting, three folder and five toilet converter machines, according to the prospectus.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news