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

 

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Scoop Business: ComCom Charges Hawkins’ Finance Companies Over Debt Recovery

The Commerce Commission has filed criminal proceedings against two finance companies run by former 1980s high-flyer Allan Hawkins over their debt recovery practices. More>>

ALSO:

Science Media Centre: The Big Science Stories Of 2014

It was a dramatic year for science, one that witnessed a severe outbreak of Ebola in West Africa and an historic mission to land a space probe on a comet. On the home front... headlines with animal testing for 'legal highs', 1080 use to tackle increased pest numbers and court action over genetically modified organisms among the most-covered stories. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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