NZ Post banks rural profit

By Phil Boeyen, ShareChat Business News Editor

Thursday 6th December 2001

New Zealand Post has sold its shareholding in rural online supply business RD1.com to dairy giant Fonterra.

The state-owned mail company has held 8% of RD1.com since October 2000 and reports it has made a 75% gain on the sale but has not disclosed the price.

NZ Post executive, John Allen, says the investment has been very successful for the company.

"Not only has New Zealand Post realised a substantial return on its investment, we have gained valuable experience in online retailing and established good business relationships within the dairy industry.

"RD1.com has been a strong performer through a period which has been difficult for capital markets in general and online retailers in particular."

Mr Allen says the company agreed to sell its shareholding at Fonterra's request to help complete the merger of RD1.com and Fencepost.com.

Fonterra is joining the two businesses into a larger rural retail and website business called the Rural Supply Company, to be run by former Reid Farmers boss Brian Bilas.

The new venture will merge RD1's 27 AnchorMart stores, Fencepost's 21 Town and Country Stores and both companies' call centres and on-line merchandising services.

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