Transpacific offloads NZ business

Group inks deal to sell unit to wholly-owned subsidiary of Beijing Capital Group.

Transpacific Industries (TPI) has entered an agreement to sell its New Zealand business to a wholly-owned subsidiary of the Beijing Capital Group.

In a statement to the Australian Securities Exchange, Transpacific said the sale is expected to be completed by June, with a pricetag of $NZ950 million attached to the deal.

Transpacific said proceeds from the sale will be used to redeem the Step-up Preference securities, as well as to refinance its syndicated debt facility and finance future investments with a strong capital base.

The deal is subject to the approval of the New Zealand Overseas Investment, as well as Chinese regulatory approval.

Deutsche Bank acted as financial advisor, while Chapman Tripp, Ashurst and Guantao Law Firm acted as legal advisors on the sale.

Last month the nation's top recycling, industrial services and waste management provider posted a net profit of $158.6 million, a 391% increase on the $32.3 million recorded in the previous corresponding period, buoyed by gains made on the divestment of its commercial vehicles group.