Ansett near $30m after price drop

By GEOFF SENESCALL

Ansett New Zealand is set to change ownership this week at a price now thought to be close to $30 million.

The Business Herald had originally understood the price of the transaction would be around $40 million.

But as negotiations draw to a close between a New Zealand consortium, led by the investment banking firm Clavell Capital, and Ansett's owner News Corp, the price has come down.

While sources expect to see the deal done this week, there is a chance it might not be announced until the week after.

It is understood that the airline will continue to lease the same planes it flies now. It is also expected to have a code share agreement with Qantas.

Currently, Qantas feeds its international tourists into Ansett's domestic flights, while Ansett channels passengers into the Qantas OneWorld alliance.

Qantas is not believed to be a shareholder in the New Zealand consortium, which is understood to include five shareholding groups.

Among them are Chris Coon and Ian Hendry, the founders of financial services group Sovereign.

Between them they got about $52 million from the sale of their stake in that firm when it was sold to ASB in 1998 for $235 million.

The investment vehicle of Auckland businessmen Alan Gibbs and Trevor Farmer, Tappenden Holdings, will take around a 20 per cent stake. Dunedin businessman Sir Cliff Skeggs will be another major shareholder.

The current Ansett New Zealand chairman and News Corp director, Ken Cowley, will also hold a substantial stake along with associated interests.

He is expected to remain as chairman of the airline.

The last group includes a number of investors. Among them are thought to be David Belcher - the principal of Clavell Capital and the person stitching the deal together - and Christchurch-based businessman Greg Lancaster.

Mr Lancaster, who has had many dealings with Mr Belcher over the years, was formerly head of Noel Leeming and Pacific Retail.

While Mr Belcher declined to comment on the deal, he did confirm talks had been held last year with KPMG who were acting for Te Whanau O Waipareira Trust, which had been considering investing in Ansett.

Mr Belcher said that KPMG had approached him.

Ansett has been operating in New Zealand since the late 1980s. In the last decade, Ansett has had two shaky years of profit and the rest losses. Its last two financial years have seen it report losses of more than $10 million a year.

In the last year the company has reduced its cost structure. Analysts say that further gains can be made by changing its aircraft and negotiating more favourable lease agreements.