Archive | Northland Port Corp

Propbd on Q Sun9Nov14 – Veritas buys bar company, NZF deal progresses, Marsden Pt lease, Turners takeover done, Kiwi Income notes to convert

Veritas buys Better Bar Co
NZF progresses reverse takeover talks
New log processor for Marsden Pt
Dorchester completes Turners takeover
Kiwi Income notes convert in December

Veritas buys Better Bar Co

Veritas Investments Ltd has entered into a conditional agreement to buy the business & assets of The Better Bar group of companies as a going concern for $31.2 million. Veritas chairman Mark Darrow said on Friday this acquisition was expected to increase Veritas’ annual revenue to over $90 million/year.

It’s Veritas’ fourth acquisition in the 18 months since it took over the listed shell of Salvus Strategic Investments Ltd, starting with purchase of The Mad Butcher franchisor business in May 2013, a 50% stake in Kiwi Pacific Foods in December and the Nosh Food Market business in September.

The Better Bar group has 11 sites in Auckland & Hamilton, including The Cav, O’Hagan’s, Doolan Brothers & Danny Doolans. The acquisition is conditional on Veritas shareholder approval at its annual meeting this month, and on landlord & key supplier consents, relevant permits & licences being obtained and key management staff transferring their employment to Veritas.

Veritas will pay $23.4 million (75%) of the purchase price in cash, funded by an ANZ Bank facility of up to $25 million, and the remaining 25% through the issue of new Veritas shares.

Subject to shareholders approving the transaction, Better Bar group chairman Richard Sigley will join the Veritas board and Geoff Tuttle will remain chief executive of the bar business.

NZF progresses reverse takeover talks

Struggling NZX-listed financier NZF Group Ltd said on Friday it had executed a non-binding terms sheet with the stakeholders of a potential acquisition target. In conjunction, NZF is considering a restructure of its notes & ordinary share capital.

The terms sheet provides for 2-way due diligence to be completed, followed by a legally binding acquisition contract by Thursday 20 November.

NZF chairman Sean Joyce said the company’s largest noteholder, Nessock Custodians Ltd, an MSL Capital Markets Ltd (McDouall Stuart) company, supported the possible transaction. Nessock had called in May for further investigation of a possible reverse takeover after the directors set a course for liquidating NZF.

New log processor for Marsden Pt

Marsden Maritime Holdings Ltd (ex-Northland Port Corp (NZ) Ltd) has entered into a long-term agreement to lease 2ha bordering the port terminal & existing log debarking facility to an unnamed tenant.

Marsden Maritime chief executive Graham Wallace said on Friday the lessee intended to establish a log processing plant on the site, operating from mid-2015, but a confidentiality agreement prevented the company from elaborating further.

Dorchester completes Turners takeover

Dorchester Pacific Ltd has achieved 100% ownership of Turners Group NZ Ltd after mopping up the outstanding 6.2% of shares through compulsory acquisition in the last week.

Kiwi Income notes convert in December

Kiwi Income Property Trust’s $120 million of 2009 8.95% mandatory convertible notes will convert into ordinary units on 20 December.

The conversion price will be determined & announced on 8 December and notes trading will cease on 15 December. The conversion price will be the lower of a 2% discount to the average of the daily volume weighted average price of the units for the preceding 20 business days (10 November-5 December) or $1.20/unit. The units closed at $1.215 on Friday.

A complication in pricing is that the record date for Kiwi Income’s interim distribution on its units is 2 December, 6 days before the notes pricing date. The value of the cash distribution will be deducted through the price-setting period.

The trust internalised management last December and its management company indicated its intention to move to full corporatisation once the notes matured.

Attribution: Company releases.

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Northland Port changes name to Marsden Maritime to reduce confusion

Northland Port Corp (NZ) Ltd will change its name to Marsden Maritime Holdings Ltd, effective Monday 4 August.

The company said on Friday it was making the change to reduce ongoing confusion between its operations & interests and those of Northport Ltd, the deepwater port at Marsden Point owned jointly by Northland Port Corp & Port of Tauranga Ltd. It would also better reflect the company’s various marine & property interests.

Marsden Maritime Holdings will remain the designated port company.

Chief executive Graham Wallace said: “While Northport is a vital part of our asset portfolio, it is not the only part. Our substantial property assets absorb much of our focus, and recently we acquired the neighbouring Marsden Cove marina, which we intend to use to help develop activity on our landholdings.

“The company’s new logo speaks to this diverse array of interests – blue represents the ocean, green depicts the land and yellow stands for the coastline that unites them.

“Our new name & logo better reflect our vision for the greater Marsden Point area and we believe it will convey this ambition more effectively to potential business partners & the investment community.”

Attribution: Company release.

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Marsden Cove sales boost Northport earnings, industrial land sales next

Published 13 February 2008

Northland Port Corp increased its surplus for the December half by 18% t0 $8.8 million (20.3c/share), mainly through a $7.6 million gain on the sale of the company’s 50% interest in marina & waterway joint venture Marsden Cove Ltd.Chairman Mike Daniel said comparisons with 2006 were complicated by the inclusion in the comparative figures of the $5 million contribution from the initial sales of the Marsden Cove sections and the distortion caused by the $1 million gain resulting from the termination of the Northport Services joint venture with Carter Holt Harvey. “If these are excluded then the Northport, North Port Coolstores & Northland Stevedoring Services joint ventures performed well & in line with budget expectations.” Mr Daniel said the company was discussing a number of projects for the industrial land next to the port, some of which should come to fruition during the second half of the year.

 

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Attribution: Company statement, story written by Bob Dey for this website.

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Council approves sale of Northland port company stake

The Northland Regional Council has approved in principle the proposed sale of a 19.9% stake in the Northland Port Corp to Ports of Auckland Ltd for almost $24 million.


Councillors heard 69 submissions on Tuesday and voted unanimously for the proposal on Wednesday.


Chairman Mark Farnsworth said councillors believed it would offer improved financial security and a valuable ally in Northland’s efforts to improve infrastructure like roading & rail.


After the sale the council would retain 52.4% of the port company, which in turn owns 50% of Marsden Pt deepwater port operator Northport Ltd.


Mr Farnsworth said the proceeds would initially be deposited in short-term investments. A final decision on what happens to the money will be made next year as part of the council’s annual plan process, which requires public consultation.


The council’s formal acceptance of Ports of Auckland’s offer is awaiting the outcome of inquiries by the Takeovers Panel, which is investigating a complaint regarding the proposed sale.


“The council has provided the panel with information it requested and expects to know the outcome of its inquiries later this week,” Mr Farnsworth said.

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Northland council may sell 19.9% of port company to Ports of Auckland

The Northland Regional Council said today it might sell 19.9% of the Northland Port Corp to Ports of Auckland Ltd, a $24 million deal which would still leave the council as majority owner.


The council holds 72.3% of its local port company, but opens a month of public consultation this Friday, 12 November, on the possibility of selling the chunk of shares at $2.90/share.


Council chairman Mark Farnsworth said a sale was by no means a done deal, but securing a strategic ally to improve Northland’s inadequate infrastructure was among a host of potential benefits.


Northland Port Corp owns 50% of Northport Ltd, operator of the deepwater port at Marsden Pt.


Mr Farnsworth said key factors driving the sale proposal were the considerable strategic & financial benefits it offered Northland, including a heavyweight ally in Northland’s ongoing efforts to improve its roading, rail & other infrastructure.


Ports of Auckland chairman Neville Darrow believes the deal would be a catalyst for a co-operative approach to port development in Northland.


“It would increase the likelihood of a planned & efficient development of trade through the 2 ports serving the Auckland & Northland regions, which already are home to more than 40% of New Zealand’s population.


“Ports are a long‑term business, and as time progresses the urban areas of Auckland & Northland will inevitably grow towards each other.”


Mr Darrow said that as more Northland produce was processed before export, container volumes shipped through Marsden Pt could be expected to increase “and this is an area where Ports of Auckland can certainly offer expertise”.


Mr Farnsworth said a cornerstone stake held by Ports of Auckland could be a catalyst for co-ordinated, long‑term planning, which was why the regional council was considering a sale to the Auckland company instead of the Port of Tauranga, which owns the other 50% of Northport.


Copies of a statement of proposal about the deal are available from all Northland Regional Council offices. Written submissions close on Monday 13 December.

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