Jamie Gray is a business reporter for the NZ Herald

Hellaby Holdings' share price rallies after equipment sale

Hellabys chief executive Alan Clarke said the board had been working through a strategic analysis of its business model since late last year. Photo / Supplied
Hellabys chief executive Alan Clarke said the board had been working through a strategic analysis of its business model since late last year. Photo / Supplied

Hellaby Holdings' share price rallied by 9.3 per cent after the company announced the sale of its subsidiary, Equipment Group, to a private equity fund for $81 million, booking a capital gain of around $30 million.

The company said it had reached a conditional agreement to sell Equipment Group --- which specialises in heavy equipment sales, servicing and forklift rentals - to Maui Capital Aqua Fund.

Proceeds from the sale would be earmarked for further investment into Hellaby's core automotive and resource services Groups, after initially being used to reduce debt, the company said.

Hellabys chief executive Alan Clarke said the board had been working through a comprehensive strategic analysis of Hellaby's business model since late last year.

"Midway through this, an unsolicited approach was received from Maui Capital, and after careful consideration the Board has determined that the terms of the offer would crystallise considerable value for Hellaby's shareholders," he said in a statement.

"In addition, we were satisfied that our staff, clients and suppliers would be in safe and capable hands going forward, with an owner who has significant expertise and is committed to taking the Equipment Group to the next stage," he said.

Hellaby's shares last traded at $2.70, up 23c or 9.31 per cent.

Get the news delivered straight to your inbox

Receive the day’s news, sport and entertainment in our daily email newsletter

SIGN UP NOW

© Copyright 2017, NZME. Publishing Limited

Assembled by: (static) on production bpcf04 at 24 Jan 2017 11:00:03 Processing Time: 382ms