The week in review

Friday 3rd August 2001

Waste Management settled acquisitions in Palmerston North, Nelson, and Melbourne and said it anticipated earnings before interest, tax, depreciation and amortisation margins of 30% in the first year on revenues of $2.25 million. The buys were funded by additional debt of around $3 million. The company also secured a 15 year collection and disposal contract with Hamilton City Council.

Freightways Express reported record June-year earnings before interest, tax, and amortisation of $24.1 million, up 18%, "underwritten by growth across all the operating businesses."

Fletcher Challenge Forests said it had been approached by several parties over the sale by receiver Ferrier Hodgson of the Central North Island Forest Partnership, in which Fletcher has around $225 million of debt. Ferrier Hodgson, which this week appointed Morgan Stanley as the sales advisor, is looking to recover at least $637 million owed to the partnership's banks.

Australian and New Zealand management bought Blue Star Print Group from parent US Office Products for an undisclosed sum. The group operates 15 businesses and has annual revenue of more than $270 million.

New Capital Markets issuer CACI Group's first cosmetic surgery clinic in Auckland is expected to lift group revenue by $1.5 million in the first year. CACI has previously provided only "non-invasive" cosmetic treatments.

Maersk New Zealand has chosen Auckland as its import port of call for a new container service to Latin America and the US Eastern seaboard.

Savoy Equities, the would-be developer of the canned Britomart project in downtown Auckland, reported a calendar 2000 loss of $78.9 million and said future viability was dependent on the support of shareholders. Net assets have fallen from $1.3 million to $520,000.

Dairy Brands said a conditional contract for the sale of seven farms for $28.7 million would not go ahead, but gave no reason. It had previously said it would consider a share buyback once the farms were sold.

National Mail's majority shareholder, Paul Meier, is offering to buy the remaining shares in the defunct company for $7c a share, against his assessment of a cash value of 4.5c. Assets include $1 million cash, a mail sorting machine, and a network of mailboxes in Auckland and Wellington.

Pay television operator Sky Television said private broadcaster TV3 would continue as Sky's rugby broadcast partner.

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