The diversified investor received an unsolicited approach from Maui Capital as it was working through a strategic analysis of its business model and agreed to accept the offer. With special feature audio.
Hellaby Holdings [NZX: HBY] agreed to sell its equipment group to private equity group Maui Capital Aqua Fund for $81 million and will use the funds to reduce debt and expand its core automotive and resource services groups.
The diversified investor received an unsolicited approach from Maui Capital as it was working through a strategic analysis of its business model and agreed to accept the offer, which will realise a capital gain on book value of about $30 million after costs and working capital adjustments, the Auckland-based company said in a statement.
Hellaby is restructuring its business under managing director Alan Clarke who joined the company last November, to focus on its automotive and resource services units, and is exiting non-core businesses such as the heavy equipment sales, servicing and forklift rental business and its footwear unit.
"Both automotive and resource services sectors offer considerable development, scale and investment potential and will be Hellaby's primary focus for acquisition and organic growth," Mr Clarke said.
Hellaby is targeting the transtasman automotive trade services sector, which it estimates to be worth about $3 billion a year, and resource services in the global oil and gas market worth more than $200 billion a year.
"We believe that together, these two groups have the potential to deliver over $1 billion in revenue with attractive profits in five years' time and Hellaby is well positioned to realise this ambition," Mr Clarke said. "We are well resourced to fund future growth opportunities, as well as continue to pay steady and growing annual dividends that will enhance medium-to-long term shareholder value."
Hellaby shares last traded at $2.47 and have shed 16% this year. The stock is rated a 'buy' according to the mean estimate of four analysts compiled by Reuters.
(BusinessDesk)
