TRANSPACIFIC OFFLOADS NEW ZEALAND BUSINESS

TRANSPACIFIC OFFLOADS NEW ZEALAND BUSINESS

 TRANSPACIFIC Industries Group Ltd (ASX:TPI) has announced it will sell its New Zealand business to a wholly owned subsidiary of the Beijing Capital Group for NZ$950 million (approximately A$880 million).

Beijing Capital Group is one of China's leading state-owned infrastructure enterprises with specialist expertise in water treatment, waste management, mass transit railway and toll roads. It is also one of China's most prominent real estate developers.

In December 2013, the group had total assets and revenues exceeding US$21 billion and US$3.7 billion respectively and employed around 20,000 people across its regional and international businesses.

Completion of the sale is expected to occur by the end of June 2014 which will allow TPI to redeem the Step-up Preference Securities (ASX: TPAPA), refinance its syndicated debt facility and fund future investments with a strong capital base. TPI will also consider the resumption of dividends in the near term.

TPI CEO Robert Boucher says the sale of the New Zealand business gives the company increased financial flexibility.

"We will look to enhance our Australian waste management businesses, capture long term growth opportunities and generate improved shareholder value," he says.

"Transpacific New Zealand is a solid business. Managing Director Tom Nickels and his team have done an excellent job in managing the operations.

"Beijing Capital Group is focused on investing in and developing the New Zealand business. We wish them and the Transpacific New Zealand staff well."

*Please note: Transpacific Industries Group (ASX:TPI) completed a changed of name to Cleanaway Waste Management (ASX:CWY) on July 1, 2016

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Hospitality mogul Glenn Piper to transform Hook Island into "world class hospitality experience"

Hospitality mogul Glenn Piper to transform Hook Island into "world class hospitality experience"

Sydney hotelier Glenn Piper has snatched up his third hospital...

Super fund HESTA "unconvinced", to vote against AGL demerger

Super fund HESTA "unconvinced", to vote against AGL demerger

Superannuation fund HESTA is backing the position of Australian tec...

Airtasker completes Oneflare acquisition after ACCC withdraws concerns

Airtasker completes Oneflare acquisition after ACCC withdraws concerns

Leading online services marketplace Airtasker (ASX: ART) has comple...

Superloop set to buy tech services firm Acurus for $15m

Superloop set to buy tech services firm Acurus for $15m

After completing $140 million worth of divestments from Singapore a...