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


NZ Post sells software support firm to B2BE

NZ Post sells software support firm in shift to slimmed-down operations

By Paul McBeth

Aug. 9 (BusinessDesk) - New Zealand Post, the state-owned postal service, sold its software support subsidiary in its latest move towards a slimmer operation as it deals with dwindling demand for its primary business.

The state-owned enterprise sold the Electronic Commerce Network to Australian-based business support firm B2BE for an undisclosed sum, effective yesterday, it said in a statement.

ECN develops and supplies software for business-to-business messaging and managing supply chains. NZ Post took full control of ECN a decade ago as it looked for an electronic commerce complement to its physical distribution service.

The sale is the latest in NZ Post's growing focus on its postal, financial and digital services, and is part of a new strategy that's seen the SOE shut its Transend division last year, and exiting its underperforming line haul business in its Australian Parcel Direct Group, John Tulloch, communications manager, told BusinessDesk in an emailed statement.

NZ Post reviewed its non-core portfolio with a view to either divesting or restructuring those investments, according to the SOE's statement of intent for the 2011 though 2014 financial years.

The statement of intent shows NZ Post has planned divestments of $33 million in the 2011/12 year, followed by $25 million in each of the following years. Any profits from asset sales won't be returned to the government, rather they will be pumped into NZ Post's operation and investment needs.

The SOE has also pared back its targeted shareholder returns, with a minimum dividend of $5 million factored in over the next three years.

NZ Post has had to contend with a slump in demand for its mail delivery services, and has publicly mulled whether to cut back those services to three days a week.

More recently, the SOE ended a joint venture courier arrangement with DHL after eight years, buying out its partner's stakes in Express Couriers of New Zealand and Parcel Direct Group.

NZ Post has $200 million of subordinated notes listed on NZX's debt market paying annual interest of 7.5 percent. They last traded at a yield of 5.75 percent, at least a two-year low according to NZX figures, at a price of $105.49 per $100 face value.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Greenpeace: Calls Foul On INEOS Rugby Sponsorship Deal

Greenpeace is calling foul on NZ Rugby’s decision to sign a sponsorship deal with the oil and plastic polluting petrochemical giant INEOS. "In the thick of the climate crisis, it’s gutting to see NZ Rugby sign a sponsorship deal with an oil and gas polluting conglomerate... More>>

Stats NZ: Quarterly Inflation Rising Steadily Across The Board

Higher prices for transport and food have driven up inflation for the all households group in the June 2021 quarter, Stats NZ said today. The ‘all households group’ represents all private New Zealand-resident households... More>>

Stats NZ: Primary Products Push Exports To A New High

New Zealand exports reached a new high in June 2021, off the back of record export values for logs and beef, Stats NZ said today. In June 2021, the value of all goods exports rose... More>>

Real Estate: June Home Transfers Remain High
There were 44,517 home transfers in the June 2021 quarter, the highest June quarter figure since 2016, Stats NZ said today. The number of home transfers was very similar to the March 2021 quarter and was up 18,252 from the June 2020 quarter... More>>

Statistics: Household Saving Falls In The March 2021 Quarter

Saving by New Zealanders in the March 2021 quarter fell to its lowest level in two years after rising sharply in 2020, Stats NZ said today. Increases in household spending outpaced income growth, leading to a decline in household saving from the elevated levels that prevailed throughout 2020... More>>