Transpacific to divest NZ arm

Transpacific Industries Group (TPI) will look to divest its New Zealand waste management business so it can focus more significantly on growth opportunities in Australia.

In a statement to the Australian Securities Exchange, Transpacific said the decision follows an extensive business and operational review.

"The board has accepted one of the findings and recommendations of that review that it should focus on the greater strategic opportunities available to Transpacific in the Australian market place," the group said.

Transpacific said it had made solid progress toward strengthening its balance sheet, reducing debt and improving its funding costs over the last two years, however, the review highlighted that further flexibility would better position it for growth opportunities in its core Australian waste management operations. 

"A sale of this business will only proceed if it appropriately reflects value for the shareholders of Transpacific," the group said.

Proceeds from the potential sale of Transpacific New Zealand would first be used to further pay down debt, but would then be utilised to bolster the group's balance sheet.

Transpacific has appointed Deutsche Bank to assist it in the process.

In a separate announcement, Transpacfic said it had successfully completed refinancing of $290 million of syndicated facilities due to mature in November 2014.

Transpacific said the refinancing was significantly over-subscribed by both domestic and offshore lenders.

Both announcements come as Transpacific convenes its annual general meeting.

Chairman Martin Hudson told shareholders trading conditions so far this financial year were little changed from the difficult environment the company made note of in its fiscal 2013 results in August.