Sharechat Logo

NZ Post sells stake in Datacom to NZ Super Fund for $142M

Monday 17th December 2012

Text too small?

New Zealand Post, the state-owned postal service, agreed to sell its 35 percent stake in Datacom Group to the New Zealand Superannuation Fund for $142 million to repay debt and bolster its capital.

NZ Post's credit rating was cut to A+ from AA- in October as the state-owned enterprise searches for new revenue streams in the face of dwindling demand for traditional postal services. It will get a net gain of $76.4 million from the sale of Datacom.

"Having a significant amount of capital locked up in a minority shareholding does not meet the currency strategic needs of the New Zealand Post Group," said chief executive Brian Roche. The sale of shares in Datacom "is a move out of necessity given other capital priorities" within the group.

The funds will be used to restructure the group's debt position and fund strategic investments, he said.

NZ Post's profit rose 38 percent last year, mainly driven by record returns from its Kiwibank subsidiary. Postal revenue fell by $17 million as kiwis posted 54 million fewer letters.

Datacom is an IT services provider with more than 3,300 staff across 13 sites in the Asia Pacific region.

NZ Post will remain a significant customer of Datacom, it said. The deal requires approval from the Australian Foreign Investment Review Board.

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:

NZ dollar sags after avalanche of data and central bank action
Fonterra board starts planning chair succession
Fulton Hogan keeps Australian civil construction unit
Time for congestion pricing has come - NZIER
Colliers defends KiwiBuild as 'far from a colossal failure'
Pushpay shares rise as cost-cutting upgrades earnings guidance
20th September 2019 Morning Report
NZ dollar weaker against British pound on EC president's Brexit optimism
Todd plans Kapuni drilling campaign
MARKET CLOSE: NZ shares gain; appetite for KFC helps Restaurant Brands hit record

IRG See IRG research reports