TRANSPACIFIC OFFLOADS NEW ZEALAND BUSINESS

Written on the 3 March 2014

TRANSPACIFIC OFFLOADS NEW ZEALAND BUSINESS

 TRANSPACIFIC Industries Group Ltd (ASX:TPI) has announced it will sell its New Zealand business to a wholly owned subsidiary of the Beijing Capital Group for NZ$950 million (approximately A$880 million).

Beijing Capital Group is one of China’s leading state-owned infrastructure enterprises with specialist expertise in water treatment, waste management, mass transit railway and toll roads. It is also one of China’s most prominent real estate developers.

In December 2013, the group had total assets and revenues exceeding US$21 billion and US$3.7 billion respectively and employed around 20,000 people across its regional and international businesses.

Completion of the sale is expected to occur by the end of June 2014 which will allow TPI to redeem the Step-up Preference Securities (ASX: TPAPA), refinance its syndicated debt facility and fund future investments with a strong capital base. TPI will also consider the resumption of dividends in the near term.

TPI CEO Robert Boucher says the sale of the New Zealand business gives the company increased financial flexibility.

“We will look to enhance our Australian waste management businesses, capture long term growth opportunities and generate improved shareholder value,” he says.

“Transpacific New Zealand is a solid business. Managing Director Tom Nickels and his team have done an excellent job in managing the operations.

“Beijing Capital Group is focused on investing in and developing the New Zealand business. We wish them and the Transpacific New Zealand staff well.”


Latest News

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

EAST COAST PROPERTY BOOM BUILDS PROFITS FOR BRICKWORKS

AUSTRALIA'S residential property boom has helped drive a sharp rise in first half earnings for Brickworks (ASX: B...

COLLINS SUPERSIZES IN EUROPE WITH PURCHASE OF 16 KFC RESTAURANTS IN THE NETHERLANDS

COLLINS Foods (ASX:CKF) has stepped up its European expansion through the purchase of 16 KFC restaurants in the Ne...

CSIRO HELPS DEVELOP AUSTRALIAN PHARMA COMPANY FROM $10 MILLION TO $305 MILLION

GOVERNMENT backed scientists have helped multiply the market value of a previously small Australian pharmaceutical...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter