Archive | Gainz

Steel & Tube confirms turnaround from 2018 loss

Steel & Tube Holdings Ltd lifted itself from a low first-half profit last year & a second-half loss to a $5.6 million net profit after tax in the December half.

The company reaffirmed guidance that it would make $25 million in ebit (earnings before interest & tax) for the year to June.

Ebit went from $7.5 million in the December 2017 half to a $43.7 million loss in June, and now a $9.8 million profit for the December 2018 half.

Normalised ebit went from $13.4 million in the December 2017 half to $4.5 million in June and up to $9.7 million in December 2018. Normalised ebit excludes non-trading adjustments including writedowns, impairments, business rationalisation & restructuring costs and gains on sale of property, as well as contributions from S&T Plastics.

Steel & Tube’s assets have shrunk from $364 million in 2017 to $346 million in June and $330 million in December 2018 – but it has slashed debt in the meantime – to just $16 million, from $96 million a year ago and $104 million in June.

“Net debt reduced significantly to $16 million due to capital raise, improved operating cashflows, tighter working capital management & prudent capital expenditure,” chief executive Mark Malpass said.

“Solid improvement in operating cashflows to $11.1 million (from $17.7 million a year ago and a negative flow of $16.4 million in June) enabled a return to dividend payments, with the board declaring an interim dividend of 3.5c/share.”

Susan Paterson, who took over the chair last year, said: “While it has been a difficult period, we now have a strong foundation with the right strategy, people & systems in place to drive the business forward and deliver earnings growth.

“We have a clear focus on growth & shareholder value and it is pleasing to see the business is now benefiting from the significant work undertaken in the first half to transform & turn around the organisation. The board remains confident in the company’s positive trajectory and is pleased to reinstate dividend payments.”

Attribution: Steel & Tube.

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Port of Tauranga lifts volumes & returns

Port of Tauranga Ltd increased group net profit after tax by 4% to $49 million ($47.1 million in 2017) in the December half, on higher cargo volumes.

Highlights:

  • Total trade increased 8.8% to nearly 13.6 million tonnes
  • Container volumes grew 5.1% to 621,117 TEUs
  • Transhipment volumes increased 18.9% to 174,983 TEUs
  • Imports increased 5.7% to almost 5.0 million tonnes (4.7 million tonnes)
  • Exports increased 10.8% to 8.6 million tonnes (7.7 million tonnes), with an 11.7% increase in log export
  • Interim dividend up 5.3% to 6c/share.

Port of Tauranga chair David Pilkington said: “Tauranga is working very well as an international hub port for shippers looking to quickly & efficiently access large ship container services.

“Tauranga is the only New Zealand port that can easily accommodate these big ships, and we are very pleased by the amount of transhipment occurring from other New Zealand locations as well as Australia.”

Bulk cargo volumes also continued to grow, driven largely by the increase in log exports but also increases in kiwifruit, meat & apple exports.

Port of Tauranga’s inland freight hub, MetroPort Auckland, handled a 3.8% increase in containers to set a new record in cargo transferred by rail to & from Auckland during the October-December seasonal peak. 

Chief executive Mark Cairns said: “All evidence points to a continuing trend to larger vessels. Our strategy to create long-term value for our shareholders is clearly working and we are now planning for the next stage of cargo growth.”

The company has ordered a ninth container crane for delivery in 2020 and is preparing to extend the container terminal quay by up to 385m by converting port-owned land south of the existing 770m quay. The company is assessing options for increasing container storage & handling capacity.

It’s reconfiguring existing wharf space on both sides of the harbour to ensure efficient cargo handling.

Cargo trends 
Log exports remain buoyant on the back of strong demand from China and record international prices. Log volumes increased 11.7% to 3.7 million tonnes and sawn timber volumes increased 9%.

Kiwifruit volumes increased 30.2%, frozen meat 17.3%, apples 64.9%. Dairy product exports were steady.

Ship visits decreased 5.4% to 842 but their average length continued to increase.

Outlook

Mr Pilkington said the company expected earnings to be at the upper end of the previous guidance of $96-101 million given in October.

Attribution: Port of Tauranga.

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PFI doubles profit

Property For Industry Ltd more than doubled its net profit after tax in 2018, from $51.7 million to $110.1 million.

Basic & diluted earnings/share rose from 11.25c to 22.08c.

The fair-value gain on investment properties rose from $43.6 million to $66.4 million.

The company increased funds from operations/share by 3.2%, adjusted funds from operations were steady and the cash dividend was increased by 1.3% to 7.55c/share.

Other highlights:

  • Portfolio revaluation gain 5.3% ($66.4 million)
  • NTA (net tangible assets)/share up 8.9% (14.5c) to 177.7c/share 
  • Second $100 million senior secured fixed rate 7-year bond issue, $37.5 million of bank facilities refinanced, gearing 30.3%
  • Over 100,000m² (15%) of portfolio leased to 30 tenants for an average increase in term of 6.2 years
  • 2 Auckland industrial properties acquired for $28.4 million.

PFI announced management structure changes in December, appointing Simon Woodhams as chiefexecutive and Craig Peirce as chief finance & operating officer from 1 January, when they switched from being independent contractors to full-time employees. Greg Reidy, managing director since 2012, will remain an independent contractor until 30 June, when he will become a non-executive director.

These appointments followed the internalisation of the management contract in mid-2017 and are part of the PFI board’s long-term approach to succession planning.

Financial performance 

Net rental income increased by 8.4% ($6.1 million) to $79.1 million, as increases from acquisitions ($4.9 million) & positive leasing activity ($3 million) partially offset a decrease due to increased vacancy ($1.8 million).

Average occupancy through 2018 was 98%, before ending the year above 99%.

The end of management fees saved $2.9 million, against a $1.8 million increase in internal administration costs.

Also as a result of the June 2017 internalisation, PFI recorded no current tax expense in 2017 and a reduced level of current tax expense in 2018. Excluding the impact of the internalisation, PFI’s effective current tax rate was 21.0% in 2017 and 20.2% in 2018.

Attribution: PFI release.

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Migrant inflow up as exit count adjusted down

Statistics NZ has created a highly confusing, and moving, picture of migration with its new formula, which became the official formula last month.

But the long & short of it is that emigration has risen sharply and immigration continues to decline.

Image above: The new series in figure 1 shows the final estimates from May 2015 to August 2017, and provisional estimates from September 2017 to December 2018, for the outcomes-based measure of migration. An experimental outcomes-based series is shown from December 2001 to June 2017 to give a longer time series.

The count for the year to December – a provisional estimate – is a net inflow of 48,300, ± 1,800, compared to 52,700(± 200) for the previous 12 months.

The ± symbol occurs a lot in these statistics, as initial figures are revised over the following months, to be finalised after 16 months.

That’s happened with the figures for the year to November, originally issued as a net inflow of 43,400 (± 1,500), now revised to an estimated 48,000 (± 1,200). Statistics NZ’s population insights senior manager, Brooke Theyers, said: “This is driven by changes in estimated migrant departures, from 100,600 (± 1,200) to 96,200 (± 1,000) for the year ended November 2018. Migrant arrivals remained relatively unchanged.”

For the December year, migrant arrivals were provisionally estimated at 145,800 (± 1,700) and migrant departures at 97,500 (± 1,400).

Mrs Theyers said that, compared with total border crossings, the number of migrants is very small: “Of every 50 people crossing our border, typically 49 are short-term movements and only 1 is a migrant arriving or departing.

“Of the 14 million border crossings in the December 2018 year, 81% are currently classified with certainty. The remaining 19% represent 2.6 million border crossings, so a small change can affect the migration estimates.

“The migration estimates become more certain after each subsequent month. In December, 1 in 4 arrivals are classified with certainty. This increases to 9 in 10 after 4 months. Therefore we expect the monthly revisions to become relatively small after about 5 months, as we can calculate the duration of stay/absence more definitively.”

Net inflow 270,000 over last 5 years

Mrs Theyers said the last 5 years – 2014-18 – had the largest net migration gains ever in New Zealand’s history, with an estimated 270,000 more migrant arrivals than migrant departures. An estimated 700,000 migrants arrived and 430,000 migrants departed over this period.

Most migrants arrived on work, visitor or student visas. However, by definition, they stayed for at least 12 months after extending their visa or transitioning to other visa types, including residence visas: “Even though many migrants arriving only stay for a year or 2, it’s important to count them as migrants and not short-term visitors. They are part of our resident population, which has implications for infrastructure & service provision.”

Using the new measure, annual net migration has gradually fallen from the record peak of 63,900 in the year ended July 2016, reflecting an increase in migrants leaving – in particular, non-NZ citizen departures.

Earlier story:
25 January 2019:
November net migrant inflow down 40%, annual rate down 19% as new measure kicks in

Attribution: Statistics NZ.

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Augusta Industrial Fund offer opens

Augusta Capital Ltd opened its unlisted industrial fund to new investment today as it seeks up to $115 million to add 5 properties to its portfolio.

That includes subscription for $10.5 million of shares by Augusta Capital itself, to ensure it maintains a shareholding of at least 10% in the fund.

The $115 million includes $10 million of oversubscriptions. Depending on takeup, new shares will comprise 58.3-60.5% of the fund’s total shares.

Gearing at this point will be in a range of 40-42%. Augusta said in the product disclosure statement it intended to continue growing the portfolio – though it had nothing further in sight for this year or 2020 – and intended to maintain a gearing target of 35-40%, which might increase to 45% short-term when new properties are acquired.

To ensure Augusta Industrial maintains its PIE (portfolio investment entity) status, no investor will be allowed to have a shareholding exceeding 19.99% of the post-issue total.

The share offer opened today and closes on Friday 22 March. Acquisition of the new properties (4 of them from other Augusta entities) will be settled and shares allocated on Thursday 28 March.

The whole portfolio of 9 properties has been valued at $296.7 million.

The portfolio’s 4 initial properties, 3 in Auckland, one in Wellington:

  • Penrose, 862-880 Great South Rd
  • Henderson, 12 Brick St
  • Mt Wellington, 20 Paisley Place
  • Wellington, Seaview, The Hub

New properties – 4 in Auckland, one in Christchurch:

  • Rosedale, 265 Albany Highway
  • Mt Wellington, 510 Mt Wellington Highway
  • Henderson, 116-152 Swanson Rd
  • Otahuhu, 5 & 21 Beach Rd
  • Christchurch, Hillsborough, Castle Rock Business Park, Mary Muller Drive

Augusta sees greenfield development opportunities at 3 of the new properties – Henderson, Mt Wellington & Rosedale.

Industrial fund chair Mark Petersen, who’s also an Augusta Capital director, says in the product disclosure statement that Augusta Industrial’s original $75 million share offer was oversubscribed. The initial portfolio’s value grew in a short time from a total purchase price of $114.1 million to $121.64 million.

Ongoing costs

The product disclosure statement highlights 2 areas of cost in managing the portfolio – management & property management fees, and interest.

Augusta Funds Management Ltd, the Augusta Capital subsidiary which runs all its portfolios, will charge a management fee of 0.5%/year of the total average value of the fund’s tangible assets, up to $500 million of assets under management, 0.4%/year above that figure.

The property management fee has been set at 1.5% of gross rental income, with 3 exceptions in the existing portfolio, on which the fees will be $50,000/year until 14 June 2021 unless it can recover more than that from tenants under their leases.

The manager will also be entitled to a performance fee equal to 10% of any shareholder returns above 10%/year, capped at 15%/year. Certain other transaction fees are also payable.

The other big cost factor is interest, forecast to be about 27% of the industrial fund’s net income for the next financial year: “Increases or decreases in interest rates will have a material effect on Augusta Industrial’s returns,” the offer document says.

“To manage this risk, Augusta Industrial has entered into interest rate swap agreements under which about 68% of Augusta Industrial’s drawn debt will be hedged on 28 March 2019, and this is expected to increase to 70% following settlement of the land sale at Great South Rd. This will reduce the exposure to floating interest rates.”

Listing potential

Augusta Capital chief executive Mark Francis has talked of the company’s intention of eventually listing the industrial fund, and following a similar track for other funds such as the tourism fund now being created, but hasn’t put a timeframe on listing.

In this product disclosure statement, the company states bluntly: “As part of this offer, Augusta Industrial does not intend to quote these shares on a market licensed in New Zealand and there is no other established market for trading them. This means that you may not be able to sell your shares.”

The offer document adds: “We do not think it is appropriate to consider a listing for Augusta Industrial at this point given current market conditions.”

Link: Augusta Industrial Fund

Attribution: Product disclosure statement.

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US debt races to new heights

The US national debt whizzed through the $US22 trillion mark this week. It takes about 30 seconds to add another $US1 million to the total.

The US Treasury’s count is running about $US3 billion ahead of the US Debt Clock website’s, reaching $US22.01 trillion on Monday. The Debt Clock made the record $US22 trillion mark overnight and was up another $US9.8 billion this morning.

Treasury records show the national debt was $US19.95 trillion when Donald Trump became president on 20 January 2017.

The US Debt Clock website shows the US federal budget deficit is approaching $US870 billion.

The country’s gross domestic product is approaching $US20.9 trillion and its gross debt:gdp ratio is at 105.35%.

Links: US Treasury, debt to the penny
US Debt Clock

Attribution: US Treasury, Debt Clock.

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6 takeouts from Orr’s ‘nothing much to say’ analysis

Reserve Bank governor Adrian Orr, at today’s monetary policy announcement release.

Reserve Bank governor Adrian Orr’s unsurprising announcement today that the official cashrate would stay at 1.75% told me this:

  • The NZ economy is weak
  • Downturns elsewhere in the world could weaken it further
  • Costs might still increase
  • Businesses could speed the rise in inflation by passing on costs quickly
  • The Reserve Bank needs inflation to get up to 2% to show the bank’s performing properly, and
  • Government spending on hospitals, housing & transport infrastructure will prop up the internal economy.

Migration & banks’ role not discussed

Mr Orr gave migration a one-liner: “Net immigration continues to ease, slightly reducing aggregate demand.” And he didn’t mention one other powerful force: Commercial banks’ performance, which has the power to raise or lower housing expectations & business intentions.

He did say in the monetary policy statement, on housebuilding: “A range of capacity-related constraints mean that many construction firms cannot expand production enough to keep up with demand. Firms report that labour shortages, credit constraints & a lack of land with suitable infrastructure are limiting further growth in the sector. These constraints are expected to limit residential investment growth in the near term.”

He also mentioned in the policy statement there was a risk of economic slowdown, and therefore the chance the bank would cut its cashrate in support: “There is a risk that economic growth could slow down further over the next year if a global slowdown reduces demand for our products. Should that happen, we could lower interest rates to support employment and ensure inflation remains around 2%.”

Since its November statement, the Reserve Bank has lowered its projection for gdp growth in the medium term, based on a lower growth assumption for potential output. Some of this decline is attributed to the fall in residential investment.

Some of the projection figures:

  • The annual rate of gross domestic product (gdp) growth reached its lowest point in 5 years in the September 2018 quarter – 2.6% versus 2 sharp drops to 1.8% in the first & fourth quarters of 2013.
  • The Reserve Bank projects in its latest monetary policy statement that the gdp growth rate will rise to 3.1% through to the September quarter this year, then ease steadily through to the March 2022 quarter, all the way down to 2.1%.
  • The bank does see gdp growing steadily, in small steps. Assuming gdp (production) of $63.6 billion this quarter (in 2009 money terms), the bank projects growth of $5.1 billion through to the March 2022 quarter – an 8.1% rise over 3 years.
  • It expects New Zealand’s net foreign liabilities to hold at around 53-54% of gdp over the next 3 years. And it expects the labour force participation rate, which was at 65.1% (seasonally adjusted) in 2000 and reached 70% in the September 2016 quarter, to have topped out at 71% in the September quarter just gone and to sit at 70.9% for the rest of its projection period. It expects average hourly earnings to have risen by 2.8% in the December quarter, to rise 3.8% in this quarter, and rises then to sit mostly in the low 3%/year range.
  • The bank & CoreLogic project that CoreLogic’s house price index will continue its decline from a peak increase of 15.1%/year in the December 2016 quarter to a rate around 2%. Since that peak, the index rises were 12.8%/year in the March 2017 quarter, dropping to 6.4%/year in the following quarter, to a projected 3.2% in the December 2018 quarter and to 2.6% this quarter. Looking forward, they see 3 bigger rises in the next 3 quarters this year (4.3%, 4.7% then 4%), then index rises mostly around 1.9-2.1%/year through to 2022.

The release statement:

Apart from the possibility of a cashrate cut to combat a decline in international trade, Mr Orr said he expected the rate to stay at 1.75% through this year & next.

In his media release he commented: “Employment is near its maximum sustainable level. However, core consumer price inflation remains below our 2% target midpoint, necessitating continued supportive monetary policy.

“Trading-partner growth is expected to further moderate in 2019 and global commodity prices have already softened, reducing the tailwind that New Zealand economic activity has benefited from. The risk of a sharper downturn in trading-partner growth has also heightened over recent months.

“Despite the weaker global impetus, we expect low interest rates & government spending to support a pick-up in New Zealand’s gdp growth over 2019. Low interest rates, and continued employment growth, should support household spending & business investment. Government spending on infrastructure & housing also supports domestic demand.

“As capacity pressures build, consumer price inflation is expected to rise to around the midpoint of our target range at 2%.

“There are upside & downside risks to this outlook. A more pronounced global downturn could weigh on domestic demand, but inflation could rise faster if firms pass on cost increases to prices to a greater extent. 

“We will keep the official cashrate at an expansionary level for a considerable period to contribute to maximising sustainable employment, and maintaining low & stable inflation.”

Link: Monetary policy statement

Attribution: Bank release, monetary policy statement.

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Countdown to 5 million population is on

Statistics NZ expects New Zealand’s resident population to reach 5 million late this year or in 2020, based on recent trends, after hitting 4.9 million at the end of September.

New Zealand’s population growth is trailing close behind Australia’s 2 biggest cities – the Australian Bureau of Statistics said Melbourne’s population reached 5 million in September and Sydney’s was 5.2 million, although research by the independent Population Australia has Sydney above 5.6 million. Australia’s population rose by 1 million in 31 months to 25 million, reaching that mark on 7 August.

Statistics NZ said in a release yesterday: “It took 30 years to move from 3 million (in 1973) to 4 million (in 2003). But it is likely to take only about half that time to increase by another 1 million – about 16 years. In 1908 the country had just 1 million people living here.”

How fast is New Zealand growing now?

According to Statistics NZ’s population clock, New Zealand’s population is increasing by one person every 5 minutes & 26 seconds.

Population growth reflects both patterns of migration & ‘natural increase’ (the difference between births & deaths). In the year ended September 2018, the population increased nearly 90,000. Over two-thirds of that was from net migration, and the rest from natural increase, with 27,000 more births than deaths.

This 1.9% growth for the September 2018 year was down from a high of 2.1% in 2016.

Those rates are strong compared to the much slower 0.5% in 2012, which was driven by natural increase during a period when the net migration flow was outward.

Statistics NZ’s latest provisional estimate of annual migration in the year ended November 2018 was 43,400, plus or minus 1500. This was the first official release of estimates using the ‘outcomes-based’ measure, which replaces the previous ‘intentions-based’ method of measuring migration.

The organisation says the outcomes-based measure is more accurate and this will flow through into other data uses, including official population estimates.

But it recognises that migration is highly variable, both month to month and over the years: “While annual net migration has been high in recent years, there have been other periods when many more people left New Zealand than arrived here. For example, from the mid-1970s there was an annual net migration loss that went on for many years.”

One other feature apparent in Statistics NZ’s monthly migration figures is the level of churn – more NZ citizens leaving than returning, and far more non-citizens arriving. Total departures jumped from 82-88,000/year in 2009-10 to 100-102,000/year in 2011-12, then fell below 90,000/year for the next 5 years, dropping to 73,000 in 2014. In the year toNovember 2018, however, exits jumped from 89,000 to almost 101,000, led by a rise in departures of non-citizens.

How many new Kiwikids are born each year?

Statistics NZ said while net immigration had dominated population growth since 2013, births had been relatively steady at about 60,000/year for the last 6 years, despite a decline in birth rates. In other words, the number of births/1000 people has been falling, but the growing population means total births remain at relatively high levels, after reachinga recent peak of almost 65,000/year in the period 2007-10.

New Zealand’s total fertility rate in 2017 was down to 1.8 births/woman, its lowest recorded level. 

Despite a much smaller population almost 60 years ago, there was an even greater number of babies (over 65,000) born in 1961–62, when the birth rate/1000 people was higher. In 1961, the total fertility rate was 4.3 births/woman, more than double the replacement level of 2.1.

What’s the effect of our growing & aging population?

As New Zealand’s population grows & ages, generally slightly more people die each year (almost 33,000 in the year to September 2018) partly offsetting the population growth from babies & new immigrants.

Statistics NZ said the number of deaths/year exceeded 30,000 for the first time in 2011: “Deaths are likely to increase, despite increasing life expectancy, because of the growing population, especially in older age groups.”

Since the early 1950s, life expectancy for both men & women has increased by more than a decade. Based on death rates in 2015–17, life expectancy at birth is 80 for men & 83 for women.

When will we get to 6 million?

Further ahead, Statistics NZ said: “Our population projections are an indication of the overall trend, rather than exact forecasts year by year. They are not predictions – the actual population growth could be lower or higher than median projection, depending on factors including highly volatile migration.

“The latest 2016-base projections indicate that New Zealand will probably reach the 6 million mark in the mid-2040s. However, it could be as soon as the 2030s, particularly if migration remains at historically high levels.

Links:
NNZ population clock
Births & deaths: Year ended December 2017
New Zealand abridged period lifetable: 2015–17 (final)
How accurate are population estimates and projections?

Earlier stories:
25 January 2019: November net migrant inflow down 40%, annual rate down 19% as new measure kicks in
13 September 2018: Melbourne sees still higher land prices & shrinking house lots as population hits 5 million

Attribution: Statistics NZ release.

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NorthWest signs Healthscope sale & leaseback deal, but Vital still undecided

Entities in the NorthWest Healthcare Properties group of Toronto have signed a conditional contract to buy 11 hospital property assets from hospital property assets from ASX-listed Healthscope Ltd for $A1.258 billion, but the NZX-listed member of the group, the Vital Healthcare Property Trust hasn’t signed up to participate – yet.

At the beginning of December, Vital doubled its loan to its manager to support the acquisition of an increased stake in Healthscope. Vital had paid $A41 million to support the investment, and in December upped it to $A81 million.

Vital’s board, who are actually directors of the trust manager, NorthWest Healthcare Properties Management Ltd, came under fire from dissident corporate investors at the trust’s annual meeting in December. The dissidents got majority support for 3 of their 5 proposals, which were deemed non-binding, but failed in the bid to get their nominee elected to the management company board.

On Friday, a related Toronto-listed trust, the NorthWest Healthcare Properties Real Estate Investment Trust, said it & its controlled entities had entered into a conditional contract to acquire 11 freehold hospital property assets from Healthscope as part of a sale & leaseback transaction.

The New Zealand management company’s chief executive, David Carr, who was a director for a short time last year but reverted to his purely executive role at the annual meeting, said in Vital’s Friday release: “Vital is not currently a party to the property transaction. Vital views it as potentially an attractive opportunity and has had significant discussions about its participation in the acquisition of the portfolio with NorthWest. Those discussions have not as yet resulted in any agreement. Any such participation is subject to being able to reach agreement on commercial terms and documentation with NorthWest.

“Further, any participation by Vital would be subject to compliance with its trust deed & the Financial Markets Conduct Act, including necessarily being in the best interest of unitholders & on arms’-length terms.”

Earlier stories:
14 January 2019: Vital Healthcare updates on developments at 6 hospitals
21 December 2018: Vital Healthcare Property dissidents show muscle, and their arguments may yet hold sway
6 December 2018: Vital doubles loan to NorthWest for Healthscope acquisition
25 November 2018: Vital Healthcare management fees up for review, new action at Healthscope

23 November 2018: 
Northwest increases Healthscope stake to 11.1%

9 May 2018: 
Vital Healthcare’s parent makes new Australian investment
11 October 2013: Dalla Lana lifts Vital stake to 24.11%
5 December 2011: Toronto healthcare specialist North West pays $11.5 million for Vital management, holds 19.8% of trust

Attribution: Company release.

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Veritas unconditional on Kingsland gastro pub buy

Veritas Investments Ltd has gone unconditional on its agreement to buy the business & assets of Citizen Park from Kingsland Trading Co Ltd as a going concern, following shareholder approval on Friday.

Veritas subsidiary The Better Bar Co Ltd expects to complete the acquisition, for $2.7 million plus stock (estimated to be $30,000), on 25 February.

Citizen Park is a gastro pub at 424 New North Rd, Kingsland.

Veritas chair Tim Cook said when the proposed acquisition was announced in December: “Citizen Park is in a highly desirable location and represents a complementary acquisition for The Better Bar Co on a number of levels, from which we could drive synergies through our existing hospitality outlets, procurement base & supplier relationships.”

Veritas will debt-fund the full purchase price from the acquisition & capital expenditure facility provided by Pacific Dawn Ltd, a subsidiary of Japanese financier Nomura Holdings Inc.

Earlier story:
19 December 2018: Veritas to buy Citizen Park

Attribution: Company release.

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