ASX-listed Transpacific Industries Group Ltd said yesterday it had obtained consent from the NZ Overseas Investment Office and all Chinese regulatory approvals for the $950 million sale of its New Zealand business to Beijing Capital Group. The sale is expected to be completed on 30 June.
Beijing Capital Group is one of China’s leading state-owned infrastructure enterprises, with specialist expertise in water treatment, waste management, mass transit railway & toll roads. It’s also one of China’s most prominent real estate developers.
At 31 December, the company’s total assets exceeded $US21 billion and it had $US3.7 billion of annual revenue.
Transpacific chief executive Robert Boucher said proceeds from the sale would allow the company to redeem its $A250 million of step-up preference securities, refinance its syndicated debt facility and fund future investments with a strong capital base. The company would also consider resuming dividends in the near term.
“The sale of our New Zealand business gives Transpacific increased financial flexibility. We will look to enhance our Australian waste management businesses, capture long-term growth opportunities and generate improved shareholder value.”
Transpacific entered the New Zealand market in 2006 when it bought the NZX-listed Waste Management (NZ) Ltd for $870 million.
Australian private equity firm Ironbridge Capital bought the competition, Enviro Waste Services Ltd, in 2007 and sold it in January last year for $501 million to Cheung Kong Infrastructure of Hong Kong, one of the largest owners of infrastructure assets in the world, founded by billionaire Sir Li Ka-shing.
Attribution: Company release, Transpacific & Enviro Waste websites.