Port of Tauranga, the country's biggest export port, will spend $34 million on Mt Maunganui-based log marshalling and scaling business Quality Marshalling.
The deal will take effect from February next year and immediately add to the port's earnings, the company says in a statement. Quality Marshalling had revenue of $18 million in the 2012 year and is privately owned by local forestry businessman Ken Holmes.
"We look forward to working together to growth the company for the benefit of our customers," port chief executive Mark Cairns says. "Quality Marshalling is a very well-run company with excellent growth prospects."
The deal comes a month after Port of Tauranga had to sell its 50 percent stake in stevedoring and marshalling business C3 to Australia's Asciano for $70 million. The Australian rail freight and ports operator exercised its right to buy out the port's holding.
The port's shares decreased 0.4 percent to $13.05 in trading today and have climbed 31 percent this year.
Mr Holmes bundled several companies into Quality Marshalling in April this year, in an amalgamation with Kopuriki Log Transfer, Fibre Recovery, Sawmill Services and M&CG Transport, according to documents lodged with the Companies Office.
At the time of the amalgamation, Mr Holmes signed a director's certificate stating that "although the proportion of the claims of creditors of the amalgamated company in relation to the value of the assets of the amalgamated company will be greater than the proportion of the claims of creditors of Quality Marshalling (Mount Maunganui) Limited in relation to the value of assets of Quality Marshalling (Mount Maunganui) Limited, no creditor will be prejudiced by this fact."
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Housing NZ directors get 63% pay hike
- Chief Justice Elias and hubby Fletcher hit with wet bus ticket over stock in lake
- MARKET CLOSE: NZ shares fall on weak global sentiment; Xero, Spark, A2 drop, Warehouse rises
- Dotcom extradition appeal set for August
- New dairy trading platform signs on Westland Milk
Most listened to
- Green party co-leader James Shaw and Business NZ's John Carnegie go head-to-head on the ETS review
- Cream Trading CEO Kevin O'Sullivan on why dairy companies might want to sign up to the new trading platform
- Paul Brislen on the merits of "cutting off the money" versus Netflix' technical attempts to shut-out unblockers
- Westpac's Dominick Stephens says dairy prices are still a major concern, despite El Niño fears fading
- London School of Economics Professor John Kay discusses financial regulatory shortcomings