Bank to manage sale
(21 October 2010 – New Zealand) The sale of South Canterbury Finance (SCF) assets will kick off this week with the appointment of an investment bank to manage part of it.
SCF receiver Kerryn Downey of McGrathNicol said yesterday that the investment bank would manage the process of selling Helicopters New Zealand, 100 percent owned by SCF, and Scales Corporation, 80 percent SCF-owned.
Helicopters is New Zealand's largest helicopter leasing business. Scales Corporation has three main businesses: it is the country's biggest apple grower and exporter; runs coolstores; and has a pet food ingredients manufacturing business.
The appointment of the investment bank for these sales marked the start of the SCF sales process, Mr Downey said.
Mr Downey expects the sale of the two companies to take about three months on average.
In February, 100 percent of Helicopters NZ and 64 percent of Scales were sold to SCF for NZ$162 million (A$123.million).
Payment from SCF was NZ$10 million in cash and NZ$152 million in SCF shares.
Mr Downey said he was optimistic the two assets would fetch more than book value but declined to comment on what that book value was.
The two businesses needed a stable shareholder to operate well and receivers were not perceived as that though arguably they were more stable than the previous owners.
Next week the receivers would announce the investment bank to manage the sale of the 'finance assets' – the good and bad bank.
The sale process for both of those could take five to six months, he said.
'The sales process will run we think to March next year, possibly even longer.'
Helicopters is New Zealand's largest helicopter leasing business. Scales Corporation has three main businesses: it is the country's biggest apple grower and exporter; runs coolstores; and has a pet food ingredients manufacturing business.
The appointment of the investment bank for these sales marked the start of the SCF sales process, Mr Downey said.
Mr Downey expects the sale of the two companies to take about three months on average.
In February, 100 percent of Helicopters NZ and 64 percent of Scales were sold to SCF for NZ$162 million (A$123.million).
Payment from SCF was NZ$10 million in cash and NZ$152 million in SCF shares.
Mr Downey said he was optimistic the two assets would fetch more than book value but declined to comment on what that book value was.
The two businesses needed a stable shareholder to operate well and receivers were not perceived as that though arguably they were more stable than the previous owners.
Next week the receivers would announce the investment bank to manage the sale of the 'finance assets' – the good and bad bank.
The sale process for both of those could take five to six months, he said.
'The sales process will run we think to March next year, possibly even longer.'
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