In case you missed it: News bites for the week.
Part of the Puhoi-Warkworth motorway.
Fletcher Building has sold its 13.4% stake in the Northern Express Group, developer of the Puhoi to Warkworth motorway, under a public private partnership contract.
In a statement to the NZX, Fletcher said the sale price was $20.2 million and the buyer was an unnamed New Zealand-based infrastructure investor.
Managing director Andrew Reding said the sale concluded Fletcher’s equity exposure to the road and PPP investments more generally.
“This move reflects our ongoing focus on simplifying our portfolio and concentrating on our core manufacturing and distribution competencies.”
The motorway was constructed under a contract with the Government to build, operate, and maintain the road for 25 years. The road is not tolled and payments to the consortium are linked to road availability rather than traffic volumes.
The other members of the Northern Express consortium are ACC, Morrison, and Acciona.
Infant formula marketer A2 Milk will shift distribution of its English-label products in China to its long-term exclusive China-label distributor China State Farm Agribusiness.
In a statement to the NZX, A2 Milk said the new arrangement would start with its A2 Genesis product early next year.
“Including a2 Genesis within CSFA’s exclusive import agent and master distribution arrangements enables a2MC to further control its [English-label] distribution with CSFA, develop its flag ship, retailer self-run and POP store network, and simplify logistics and warehousing arrangements,” it said.
In the year to June, A2 Milk had cross-border ecommerce and offline-to-online revenue for its English-label products of $559m, up from $448m the previous year.
Tākuta Ferris.
Te Pāti Māori’s national council has sought to bring an end to the party’s internal feuding by expelling rebel MPs Mariameno Kapa-Kingi and Tākuta Ferris. But the party will not use the waka jumping legislation to expel them from Parliament. Te Pāti Māori co-leaders Debbie Ngarewa-Packer and Rawiri Waititi announced the expulsion at a news conference in Parliament but said it was up to the party’s national council to explain why the MPs had been expelled. Waititi said, however, that the expulsions were necessary to end a six-week debacle for the party and for it to refocus on making the coalition Government a one-term government. He confirmed that under the party’s constitution Kapa-Kingi and Ferris could challenge the decision to expel them.
The New Zealand Gambling Commission has renewed the casino venue licence for SkyCity Queenstown for 15 years from December 7.
The casino’s previous licence ran for 25 years from December 2000, covering up to 12 gaming tables and 86 pokie machines.
In the year to June, SkyCity Queenstown had revenue of $11.4 million.
Specialist property investor Vital Healthcare Property Trust has completed a $190m placement of new units, as part of its $220m capital raise to internalise its management.
The company announced the raise yesterday alongside its plan to purchase its management contract from Canadian-based Northwest Healthcare Properties Management Ltd for $214m. The company said the placement closed fully subscribed.
“We are delighted at the outcome, which showed strong interest not only from existing unit holders but also new investors,” Vital chair Graham Stuart said.
With the central part of the raise completed, the company will look to raise a further $30m through a unit purchase plan offered to its retail investors, which opens on Friday.
Full details of the plan will be released to the market on November 14.
A trading halt on the company’s units will be lifted when the market opens this morning.
Under changes announced today, the coalition Government will repeal and replace the Arms Act 1983.
The new law will make gang membership an automatic disqualification for obtaining a gun licence, a statutory ‘red flag’ system will be set up to signal to the firearms regulator whether a licensed firearm owner remains a fit and proper person, and penalties for the existing 60 offences will be increased, while eight new offences will be introduced.
The law will also address issues such as the illegal manufacture of 3D printed firearms and parts, and possession of digital files without a licence.
Associate Justice Minister Nicole McKee said simpler rules would make it easier for licensed firearm owners to use and store their firearms. A new firearms regulator would be established and be independent of the Police.
“However, police officers will still have access to the essential information they need to enforce the law,” McKee said.
Colin Lynch has been appointed Government Statistician and chief executive of Statistics New Zealand. Lynch is currently deputy chief executive at the Ministry of Housing and Urban Development, and from 2019 to 2024 was a partner at PwC. He has previously served as Deputy Government Statistician and has worked at the Treasury and the Ministry of Justice. Deputy Public Service Commissioner Heather Baggott said Lynch had a strong record of strategic leadership, building organisational capability and culture, and delivering results across government. “He understands the importance of public trust in data and has a clear vision for the future of Stats NZ,” Baggott said.
Promisia Ranfurly.
NZX-listed aged care provider Promisia Healthcare is eyeing up new acquisitions, after a slide into the red. The company reported a net loss of $49,000 for the six months ended September, compared with last year’s $5.8m profit, which was inflated by large gains on the value of an acquisition. Accounting for these one-off items, Promisia’s preferred measure of underlying earnings was up 31% to $2.5m. Revenue for the half rose to $19.2m from $13m, on the back of higher care and village fees. However, expenses rose to $18.9m from $12.7m, driven in large part by a $5m increase in operating expenses and a vendor loan interest expense. “After a year laying new foundations, the company is now demonstrating disciplined execution and meaningful operational momentum across every part of its business,” the company said. Company chair Rhonda Sherriff also noted Promisia was in early negotiations for a potential acquisition that aligned with its focus on the regions.
The Reserve Bank’s Wellington building is currently closed after isolated asbestos disturbance was identified at the building on November 6, after a routine check. The specific area was contained, and the finding was reported to WorkSafe. The building contains encapsulated asbestos. “Assurance testing has since been completed. However, the building needs to remain closed while the asbestos disturbance is remediated, as fire sprinkler systems on a key emergency exit floor need to be deactivated,” the central bank said. The building will remain closed while the work is carried out, possibly until November 24.
2 Cheap Cars’ half-year profit has fallen 47% after being hit by economic challenges. Its total net profit for the six months ended September fell to $884,000 from $1.68m in the prior year, as revenue dropped to $39.8m from $42m due to a 13% fall in vehicle sales. The company also said its gross margins were down to $7.9m from $9.1m because of the impact of carbon tax costs under the Clean Car Standard. Continued economic weakness, low immigration levels and high regulatory costs were all cited as factors affecting the company’s results. The company said it was responding to the challenges by recruiting a brand and marketing manager and having its chief executive spend more time on the ground in Japan. It also said it expected to benefit from falling interest rates and contributions from new dealerships, although this could be outweighed by broader economic and regulatory challenges. The board declared an interim dividend of 2.15 cents per share.
Black Pearl Group has announced an A$10.2 million ($11.8m) capital raise from both existing and new institutional investors. The NZX-listed sales leads generation software company said proceeds from the raise would "support growth across all product ventures, fund further investment in the Pearl Engine (our private data platform) and provide additional working capital to enable swift execution on emerging opportunities". The offer will be at a fixed price of A$0.865 ($1) per share, representing a 13.4% discount to the last closing price of $1.155 on November 12, and a 13.1% discount to the five-day volume weighted average price of NZ$1.15. The company said it was in the process of applying for a foreign exempt listing on the ASX, which was "expected later this month". The board said it was in shareholders' best interests to capitalise on its current momentum and position it to deliver on its "substantial growth pipeline".
Former financial advisor David McEwen has pleaded guilty to all charges relating to breaching a stop order imposed by the Financial Markets Authority, and is scheduled for sentencing on January 14. The FMA had previously issued warnings about financial products and related advice provided by McEwen. It issued a stop order against him and associated entities – including stockpicking service Stockfox – in December 2023 after finding McEwen & Associates' communications relating to financial products were false or misleading, contained material errors, and did not comply with the Financial Markets Conduct Act. Last December, the FMA filed criminal charges against McEwen for breaching that order due to concerns he was still contacting potential investors. FMA enforcement head Margot Gatland recommended that investors contacted by McEwen or entities associated with him, in relation to an offer of a financial product, report it to the FMA.
The Regulatory Standards Bill has passed into law, with Regulation Minister David Seymour saying it was a historic moment for Kiwis’ rights. “Politicians will no longer be able to hide lazy thinking that piles regulatory costs on Kiwis. The high cost of regulation will be there for all to see, for each and every law. Over time, political pressure will reduce those costs,” Seymour said. Labour Party regulation spokesperson Duncan Webb said the legislation put corporate interests ahead of what was best for the public. “Once again, [Prime Minister] Christopher Luxon has shown he is out of touch and too weak to stand up to David Seymour,” Webb said. He said if Labour led the next government, it would repeal the legislation within its first 100 days in office. Green Party co-leader Marama Davidson said the legislation was attacking Te Tiriti o Waitangi to make life easier for wealthy companies to “exploit our whanau and our taiao for profit”.
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