Vista Group shares skyrocket as it gets new majority shareholder - Market close

The S&P/NZX 50 Index closed at 11,756, down 27.39 points or 0.23 per cent.

Technology firm Vista Group dominated the trading and price movements, rising 14 per cent, after gaining a new majority shareholder on an otherwise quiet day on the New Zealand sharemarket.

The S&P/NZX 50 Index closed at 11,756, down 27.39 points or 0.23 per cent after reaching an intraday low of 11,709.95.

There were 65 gainers and 76 decliners over the whole market on volumes of 70.86 million share transactions worth $182.43 million. A total of 50.44 million Vista shares worth $105.92m were traded.

Vista, a global leader in cinema management software, rose 26c or 14.13 per cent to $2.10 after Australian private equity firm Potentia Capital Management took an 18.45 per cent shareholding, buying 43.86 million shares on-market for $92.12m (at $2.10 a share).

Potentia is also buying a further 10.6 million shares from Jarden Securities, increasing the holding to 19.9 per cent. Potentia said if it made a takeover within 12 months and the offer was higher than the sale price, it would pay the difference to those who have just sold.

Greg Smith, head of retail with Devon Funds Management, said Vista went through the wringer during the Covid pandemic. “The company has a very strong market share, no one is really competing with them and this would be a big attraction for Australian private equity.”

Over the weekend (NZ time), the Nasdaq Composite in the United States hit a record close after gaining 1.1 per cent to 16,920.8 points. The index has risen 12.7 per cent this year in the face of high interest rates and a weaker economy.

At home, Ryman Healthcare declined 8c or 2.05 per cent to $3.82 after reporting an 18.2 per cent increase in revenue to $689.88m and a fall in net profit to $4.77m, from $257.8m, for the 12 months ending March.

The bottom line was hit by impairments and other one-off costs of $283.9m and a lower gain on the value of investment properties. Its underlying profit of $270m was down 11 per cent on the previous year, and in line with the February revised guidance of $265m-$285m.

Net debt was steady at $2.51 billion and gearing increased to 36.2 per cent. Ryman expects to complete 850-950 retirement village units and aged-care beds during the 2025 financial year.

Kiwi Property, down 1c to 81c, reported full-year revenue of $244.67m, down 5.6 per cent, and a net loss of $2.12m. Operating profit before tax was 16.5 per cent lower at $108.2m following the sale of Northlands and Westgate Lifestyle shopping centres.

Smith said the Ryman result was a bit of relief on several counts. The company is cutting to the chase and getting its house in order and has reached a turning point. The Kiwi result was mundane, with cost control the main message.

He said both results were the hors d’oeuvres before the main events later this week – with Fisher and Paykel Healthcare and Mainfreight reporting and the new Government delivering its first Budget.

Fisher and Paykel Healthcare was down 28c to $28.05; Mainfreight declined $1.22 or 1.8 per cent to $66.50; Skellerup decreased 8c or 2.04 per cent to $3.85; Contact Energy shed 10c to $8.90; Sky TV eased 5c or 1.99 per cent to $2.46; and Property for Industry was down 4c or 1.83 per cent to $2.15.

Other decliners were Ventia Services, shedding 10c or 2.54 per cent to $3.83; Arvida Group down 2c or 2.04 per cent to 96c; PGG Wrightson decreasing 3c or 1.9 per cent to $1.55; Move Logistics easing 1.5c or 4 per cent to 36c; ikeGPS down 2c or 4.44 per cent to 43c; and South Port NZ falling 16c or 2.86 per cent to $5.44.

Infratil, decreasing 13c to $10.85, has launched a $75m, seven-and-a-half-year infrastructure bond offer which closes on May 30.

Global marketer a2 Milk gained a further 17c or 2.19 per cent to $7.93 and has risen from $4.07 on November 14. Fletcher Building was up 10c or 3.33 per cent to $3.10 and Vulcan Steel increased 13c to $7.90.

Scales Corp added 9c or 2.7 per cent to $3.41; AFT Pharmaceuticals rose 16c or 5.5 per cent to $3.07; Winton Land increased 7c or 3.45 per cent to $2.10; NZME was up 3c or 3.57 per cent to 87c; Allied Farmers improved 2c or 2.67 per cent to 77c; and 2 Cheap Cars added 2c or 2.27 per cent to 90c.

Third Age Health Services gained 2c to $1.40 after reporting a 35 per cent rise in revenue to $15.15m and net profit of $1.36m for the year ending March. It is paying a final dividend of 2.7c a share on June 17.