Sharechat Logo

Hirequip ­ hunted or hunter?

By Nick Stride

Friday 21st May 2004

Text too small?
Hirequip shares rose a further 5c on Wednesday on the announcement of a significant acquisition ­ and, possibly, on speculation the company is itself a takeover target.

Hirequip paid $11.3 million for Power Hire, the country's largest generator hire company.

First New Zealand Capital welcomed "a very solid acquisition," saying it would add a further $6.5 million of annual revenue.

The sharebroker upgraded its earnings forecasts for the current year and the next two.

Analyst Dwane Clark said there were a number of acquisition opportunities available to Hirequip but these were beginning to be fully reflected in the price. It was possible the share price was also reflecting a takeover premium as speculation increased on a move by Australia's Coates Hire into the local market.

A takeover offer from Coates would need to secure the 27% stake held by managing director Stuart McKinlay.

ABN Amro says there are few potential acquisitions of scale remaining in New Zealand.

It says the acquisition of a significant local competitor by Coates could prove a competitive threat.

  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:

July 29th Morning Report
General Capital Annual Shareholders Meeting Results
MEE - Receivers and Liquidators appointed to King Honey
2 Cheap Cars Group Updates Performance Outlook for FY26
Spark announces Director changes as part of Board renewal
July 28th Morning Report
KMD Brands announces new Group Chief Financial Officer
Commerce Commission to issue SOI re Viridian application
FBU - Moody's affirms FBU Baa3/stable rating
Contact Energy FY25 Financial Results Presentation