Rangatira invests $5M in 'high-growth' companies

Thursday 29th March 2012

Rangatira, the Wellington-based investment company, has invested about $5 million in high-growth ventures including, online accounting software provider, Xero, Valar Ventures and the New Zealand Growth Fund.

The investment will make up about 5 percent of the company’s portfolio.

“These three investments mark an evolution of Rangatira’s investing in business for growth strategy by investing in early stage companies and by helping support investment funds that specifically target emerging New Zealand companies with high growth potential,” Ian Frame, chief executive said in a statement.

Rangatira has about $100 million invested in privately held unlisted New Zealand companies and about $40 million of listed equity investments. It currently holds some $15 million in cash with no debt.

Last year, Rangatira sold its shares in furniture and bed manufacture, Dunlop Living, Tecpak Industries and unprofitable wine maker Te Kairanga Wines.

“As signalled late last year, in 2012 we are looking to invest in up to three mid-sized unlisted New Zealand companies with good growth potential that require additional capital to take them to the next stage,” Frame said. “To this end we have around $30 million of funds to invest either on our own or in companies that meet our criteria alongside other like-minded investors.”

Rangatira has two classes of shares that trade on the Unlisted platform, with 67 percent held as class ‘A’ shares and 33 percent held in class ‘B’ shares to differentiate between charitable and non-charitable shareholders. The ‘A’ shares last traded on Feb. 8 at $6 while, the ‘B’ shares last traded on Aug. 22 at $5.80.

(BusinessDesk)

BusinessDesk.co.nz

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