CeAnic looks to set up marine "centre for excellence"

By NZPA

Wednesday 12th March 2003

A marine centre of excellence will be set up in Auckland as part of the launch of new marine investment company CeAnic.

CeAnic opened a $20 million initial public offering today as the company outlined its intention to boost New Zealand's burgeoning marine industry through direct investment and providing marketing alliances.

"When people think of the marine industry they always think of boat building," director and investment banker Prem Maan told NZPA.

And while that industry earned around $700 million last year -- "around twice the size of the domestic wine industry" -- CeAnic was looking wider afield, he said.

"Boatbuilding initially may be the most important of the business, but we are looking at four business streams, the other three being marine tourism, aquaculture and marine-based energy production."

CeAnic shares, which require a minimum investment of $5000, have been priced at $1 each. If the offer is oversubscribed, the company has set a limit of another $10 million in shares and notes.

At a launch in Auckland today, company directors said CeAnic would set up the marine centre as a non-profit venture to identify and promote the development of marine industry innovations.

It has also taken 20 percent stakes in three start-ups and a marine debt financing company called Guardian Capital Finance.

The companies have been split off from an original company owned by marine veterans John Harrhy and CeAnic director Wayne Shaw who, in return, would receive eight million CeAnic "founder shares".

All the companies had existing products or work in the system, Mr Maan said.

For example, Dynamic Marine Systems, a marine software development company, had received a government grant to develop a global positioning system to enable vessels to hover accurately on a fixed position.

Another company, Saba Yachts, was building its first commission, a 25m deep-hulled expedition ship worth about $5 million.

Smartships, an intellectual property company, already held designs for vessels like the self-righting Lady Elizabeth police boat and naval assault boats.

CeAnic is seeking to raise $15 million in shares and $5 million in medium-term convertible notes, with room for up to $10 million in over-subscriptions.

Contrary to media reports, a stock exchange listing would not be sought at the moment because the sharemarket's short-term focus was not conducive to the company's long-term perspective, Mr Maan said.

He said a key plank of the company was the European partnerships it hopes to form with the help of director and world champion yachtie Jesper Bank. But those alliances would not happen overnight.

"We're not opposed to listing at some stage in the future... (but) we believe for initial investors the best way for them to maximise value and then it will list once it's created value, so it will be able to list at a reasonable premium."

CeAnic's prospectus forecasts positive cashflow in the first year at around $153,000.

Its board includes heavyweights John Storey, a former Dairy Board chairman, and Fran Wilde, former head of the Trade Development Board, and its chief executive is Hans Peder Wagner, the former head of the Danish Trade Commission in New Zealand.

CeAnic convertible notes will be fixed at a minimum of 7.25 percent per annum which will convert after five years to ordinary shares.

The offer, which is not underwritten, closes on April 17.

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