Transpacific looks to sell NZ assets

Kim Ellis, former Managing Director of Waste Management pictured in 2005 before the company was bought by Transpacific Industries. Photo / NZ Herald

ASX-listed Transpacific Industries (TPI) said it was looking to sell its New Zealand operations in order to focus on growth opportunities in Australia.

Transpacific entered the New Zealand waste disposal industry in 2006 when it bought the then NZX-listed Waste Management NZ as part of a large buying spree on both sides of the Tasman.

The Australian company said its decision to divest followed an extensive operational review.

"The board has accepted one of the findings and recommendations of that review that it should focus on the greater strategic opportunities available to TPI in the Australian market place," TPI said in a statement.

TPI New Zealand has forecast full year 2014 earnings before interest, tax, depreciation and amortisation of around NZ$110 million, TPI said.

"The quality of its assets, its leading market position, its people and its strong customer relationships are expected to draw interest from investors well placed to develop and grow that business in its own right," Transpacific said.

TPI has appointed Deutsche Bank to assist it in the process.

Transpacific NZ and its competitor, EnviroWaste, are the two main waste management companies in New Zealand.