The receivers of South Canterbury Finance have appointed Goldman Sachs and Partners New Zealand to advise on the sale of two of the finance company's largest assets.
McGrathNicol's Kerryn Downey and William Black yesterday said the investment bank would help with the sale of wholly owned Helicopters (New Zealand) and
a 79.7 per cent share in Scales Corporation.
Scales is one of the country's largest apple producers, through its subsidiary Mr Apple New Zealand, with 17 orchards in Hawkes Bay growing more than two million cartons of apples each year.
Helicopters NZ and Scales are separate from South Canterbury Finance, and are not in receivership.
In March, Timaru businessman Allan Hubbard's Southbury Corporation transferred the two assets into South Canterbury Finance in a deal valued at $152.5 million in a bid to boost its equity and stave off collapse.
The finance company was put in receivership on August 31, resulting in a Government payout of $1.775 million to depositors and first-ranking debtors.
Earlier this week, Downey said he hoped to get a good price for the two assets. Helicopters NZ had net income of $16.2 million in the year ended June 30, 2009, while Scales had earnings of $29.8 million.
"We have a very competitive [sales] process coming because there has been a lot of interest in both Helicopters and Scales," Downey said.
Turners & Growers has already ruled itself out as a buyer for the Scales apple business.
Industry sources said it was unlikely Scales would be sold as a whole in New Zealand because some of the orchards were not well-positioned.
It was likely to be either broken up or sold to an overseas buyer.
Overseas interest had already been expressed in the helicopter business, Downey said. Helicopters (New Zealand) operates a fleet of 43 helicopters across Australasia, Southeast Asia and Antarctica.
The receivers hope to have indicative offers for both investments by the end of the year.
Downey told Radio New Zealand that in a week an adviser would be appointed to help sell South Canterbury Finance loans.
