Hellaby Holdings jumps 7% on sale of equipment group
The diversified investor said it had received an unsolicited approach from the Maui Capital Aqua Fund and had accepted the offer. With special feature audio.
Shares in Hellaby Holdings [NZX: HBY] are the biggest riser on the NZX, jumping 7.3 percent to $2.65 off the back of the sale of its equipment group to a private equity fund for $81 million.
The diversified investor said it had received an unsolicited approach from the Maui Capital Aqua Fund and had accepted the offer. It will realise a capital gain of about $30 million after costs and working capital adjustments on the equipment group's book value. The Auckland-based company said it would use the money to expand its core automotive and resource services group.
Greg Smith, head of research at Fat Prophets, said the sale was a "pretty meaty deal" when considered against Hellaby's market capitalisation of $236 million.
"They've got a good price as normally with private equity it's going the other way. It's quite good to be flicking something on to private equity at above book value, so it's positive for shareholders and the market's responded to that"
The company's equipment group includes the Christchurch-based New Zealand Trucks, which services and sells parts for the transport industry, AB Equipment which sells and rents forklifts, and the Auckland-based Eurolift.
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.
Last week Hellaby announced it was to buy the maintenance and engineering contractor, TBS Group for $45 million plus $6 million of earn-outs.
Hellaby's shares have fallen 16 percent since the start of the year.
(BusinessDesk)
Edwin Mitson
Wed, 29 Jun 2016
Wed, 29 Jun 2016
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Hellaby Holdings jumps 7% on sale of equipment group
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