Beijing Capital to buy New Zealand waste management firm for $798 mn
04 Mar 2014
Beijing Capital Group, owned by Beijing Municipal Government, yesterday agreed to buy New Zealand waste management business from Australia's Transpacific Industries Group for NZ$950 million ($798 million).
The deal would give Beijing Capital landfill sites, recycling depots and hazardous-waste treatment facilities across New Zealand.
Transpacific said proceeds from the sale will be used to redeem preference securities, refinance debt and fund future investments.
The deal is expected to close by the end of June 2014 subject to approvals from the New Zealand Overseas Investment Office and Chinese regulators.
Robert Boucher, CEO of Transpacific said, ''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.''
''The investment carries significant and mutual technical and commercial benefits for both companies and will open further strong commercial links between the New Zealand and Chinese markets,'' said Beijing's Capital's general manager, Wang Hao.
Beijing Capital, one of China's Top 500 Enterprises, is an infrastructure company specialising in water treatment, waste management, mass transit railway and toll roads. It is also one of China's leading real estate developers.
Beijing Capital had assets and revenues over $21 billion and $3.7 billion respectively as at December 2013.
Brisbane-based Transpacific is a recycling, waste management and industrial services company operating in Australia and New Zealand. The company has one of Australia's largest fleets of specialist waste management vehicles with more than 5,000 vehicles.
It is an ASX top 200 listed company and employs more than 6,500 people across Australia and New Zealand.
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