Sharechat Logo

Transpacific gains OIO approval for NZ unit sale to Beijing Capital

Tuesday 10th June 2014

Text too small?

The Overseas Investment Office has approved the sale of the New Zealand waste management arm of Transpacific Industries to Beijing Capital Group.

Chinese state-owned Beijing Capital spent $950 million on the New Zealand business, buying it from the Queensland-based company in March. At the time of the announcement it said the current management team would remain and operations would continue as normal. The sale has also been approved by Chinese regulators.

Transpacific wrote down the value of the kiwi business by A$188 million in 2011 after acquiring the operations for $870 million in 2006. The company’s decision to scale back its business comes after a debt-fuelled expansion before the global financial crisis, culminating in 2008 with the A$1.25 billion acquisition of rival Cleanaway to create Australasia’s biggest waste disposal firm.

Beijing Capital is a water treatment, waste management, mass transit railway and toll road company with property development interests. Its assets are valued at US$21 billion and its New Zealand investment is the company’s first major international acquisition, it said in March.

Transpacific's dual-listed shares, which rarely trade on the NZX, were unchanged at $1.20 and have declined 11 percent this year. On the ASX they last traded at A$1.095, and have fallen 6.4 percent year to date.

 

 

 

 

BusinessDesk.co.nz

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Booster tests waters with NZX listing of private property trust
Liquidation can be sought on small debts, appeal court finds
House price inflation rekindles but low sales volumes suggest caution
Liquidators estimate $16m shortfall from Stanley-Tallwood collapse
Manufacturing contraction extends into August
House price inflation rekindles but low sales volumes suggest caution
13th September 2019 Morning Report
Tamarind halts Tui drilling; OMV assesses options
NZ weaker as ECB package, inflation data lifts greenback
MARKET CLOSE: Z Energy, Synlait crash on earnings downgrades

IRG See IRG research reports