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


MBO Of Eastern Equities



Eastern Equities founder and chairman Peter Roebuck, and chief executive Murray Boyte have formed a joint venture with AMP Asset Management to bid for the shares of the listed Hawkes Bay transport, contracting and horticultural company.

On complete acceptance of the offer, the management buy out (MBO) will result in the delisting and privatisation of Eastern Equities.

"With a market capitalisation before the bid of less than $17 million, Eastern Equities is disadvantaged by being listed," said Mr Roebuck.

"Today's institutional investors prefer larger companies with greater liquidity and depth."

"Volatility in the share register and the share price has affected Eastern Equities' business plans. Having stable and committed ownership as a result of the MBO will benefit the company as well as its staff, customers and suppliers."

"A company like Eastern Equities is better suited to the rapidly developing private capital market rather than the listed market."

A notice was lodged with the New Zealand Stock Exchange today, offering to buy Eastern Equities at 62 cents per share. This represents a premium of 33.33% over the weighted average share price since the company's latest annual result about nine months ago.

"The offer provides all shareholders with liquidity and a healthy premium."

"Having the involvement of AMP Asset Management, New Zealand's largest funds manager, offers the company sound support and financial backing in its businesses. AMP is being advised by Pencarrow Private Equity, both of whom have considerable experience in backing MBOs."

The Eastern Equities board will now commission an independent report on the offer and then communicate with shareholders.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Greenpeace: Govt Extends OMV Exploration Permit

The Government has just granted oil giant OMV a two-year extension to drill in the Great South Basin, despite issuing a ban on new oil and gas exploration permits in April. More>>


Collective Bargaining For Contractors: Working Group's Model For Screen Sector

A recommended model to allow collective bargaining for contractors in the screen sector has today been unveiled by the Government-convened Film Industry Working Group. More>>


Kauri Dieback: DOC Closing Tracks To Protect Trees

The Department of Conservation will close 21 tracks across kauri land to help prevent the spread of kauri dieback. An additional 10 tracks will also be partially closed and the open sections upgraded... More>>

Price Of Cheese: Dairy Product Prices Descend

Dairy product prices fell at the Global Dairy Trade auction as whole milk powder slid amid the prospect of increased supply. More>>


Deductible Horses: Peters' Bloodstock Investment Plan

“Cabinet has approved the final design of the bloodstock rules which were first signalled in Budget 2018. Investors new to bloodstock breeding will be able to claim tax deductions for the cost of horses, even if they don't own an existing horse breeding business...” More>>

Petrol Up 19%: Annual Inflation To September 1.9 Percent

The consumers price index (CPI) increased 1.9 percent in the September 2018 year, driven by higher petrol prices, Stats NZ said today. This follows a 1.5 percent annual inflation rate for the June 2018 year. More>>