Baycorp sets up Asian joint venture

By LIBBY MIDDLEBROOK

New Zealand's largest debt-collector, Baycorp Holdings, is boosting its presence in Asia in a multi-million dollar deal.

Baycorp has formed a 50-50 joint venture with a subsidiary of Singapore Exchange-listed Keppel Telecommunications & Transport to service the online credit and business information market throughout the Asia-Pacific region.

The joint company, BizInfo Asia Pacific, will provide financial risk management solutions, company analysis and data and online credit reporting systems, allowing Baycorp to license its New Zealand-designed technology.

Keppel is a telecommunications and logistics provider in Asia with turnover of more than $S390 million ($457 million).

BizInfo, which aims to achieve growth through acquisitions, has already made its first purchase, laying out $S8.8 million ($10.3 million) for a 52 per cent stake in one of Singapore's largest credit reporting businesses, Infocredit Holdings, which last year bought a licence to run Baycorp's online credit information system.

Baycorp's general manager of group strategy, Paul Stewart, said the Asian downturn had placed more pressure on banks and companies to do thorough credit checks.

"Online access to basic credit reporting basically doesn't exist to any great extent in Asia, which presents a great opportunity."

Mr Stewart said BizInfo had bought a stake in Infocredit because of the company's strong existing business network.

Infocredit has a number of business interests, including a Singapore joint venture called SingBizInfo with Dun and Bradstreet, an international debt-collection agency with a turnover of $1.9 billion.

Mr Stewart said there were opportunities for SingBizInfo to take up Baycorp's online credit reporting technology, along with other e-commerce solutions such as a consumer credit service for Singapore.

He believed Baycorp would generate the most revenues through technology licence arrangements in Asia, which would include upfront and annual maintenance fees and a royalty on percentage of turnover through debt-collection.

BizInfo, which was expected to list soon on Singapore and/or the Nasdaq stock exchanges, would eventually expand further into the global market, said Mr Stewart.

Baycorp and Keppel were unlikely to reduce their shareholdings in the company below 20 per cent each in the event of a public listing.

"Baycorp's not there to get a quick run as an investor. Asia is in our focus at the moment - we see it as offering the best growth opportunities for us."

Baycorp, which has maintained 20 per cent annual profit growth for the past three years, experienced a 70c jump in its share price yesterday to close at $11.05.