By NZPA
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Friday 24th January 2003 |
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After a query from the Stock Exchange's market surveillance panel, the company said yesterday that it was considering several indicative bids for Hirepool, its thriving equipment-hire business.
It expected to say "shortly" whether bidders would do due diligence.
Analysts believe Hirepool could be worth $50 million.
To put that in context: yesterday's market capitalisation of Owens Group was $55 million.
In its statement to the exchange, the company reiterated that it would sell Hirepool only for "full value".
The company's share price increased from 87c at Monday's close to 98c at yesterday's close. It fell back 2c to 96 in early trading today.
Owens Group operates in New Zealand and Australia in road transport, international freight forwarding, contract warehousing and shipping services.
Its largest shareholders are Owens family interests and an institutional investor, AMP Henderson.
Owens Group publicly identified Hirepool as a sale possibility in November when it announced plans to focus on its core transport and logistics business.
The announcement coincided with an 80 per cent fall in first-half net profit to $505,000.
The company is on the acquisition trail, seeking economies of scale in the core business.
Last month, it announced the purchase of a Tauranga freight forwarder, Freight Bureau International.
The need for consolidation in the transport sector leads to periodic speculation about Owens Group as a takeover target or merger candidate.
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