Rangatira lifts stake in Hellers

Wellington-based investment group Rangatira Investments has increased its holding in Hellers after buying shares from the former managing director of the meat products maker.

Rangatira lifted its holding to 62.5% from the 50% initial investment it made in 2003.

Founder Todd Heller has retained his holding at 29.8% while former managing director Nick Harris sold some of his 19.8% holding. No price was disclosed and Hellers doesn't release its financial statements.

Hellers dates back to 1985, when Todd Heller, who comes from a family of butchers, opened his own butchery in the Christchurch suburb of New Brighton. The company now owns brands including Kiwi Bacon, Huttons and chicken products producer Santa Rosa.

Rangatira chief executive Phil Veal says its investment strategy was to target "middle market New Zealand businesses that have strong growth prospects, to deliver returns to its shareholders and to be part of building iconic New Zealand brands such as Hellers."

"We are looking for more medium-sized New Zealand companies that need investment and have the potential to mirror the success of Hellers," he says

In June, Rangatira reported a 15% gain in annual underlying earnings to $9.2 million. Net profit fell 65% to $13.7 million, reflecting a year-earlier gain from the sale of its 50% stake in Contract Resources to Hellaby Holdings.

The company had about $200 million of assets under management at June 30.

Rangatira has two classes of shares that trade on the Unlisted platform, with 35% held as class 'A' shares and 65% in class 'B' shares to differentiate between charitable and non-charitable shareholders.

The class A shares last traded at $9.75 and the class B shares at $9.25.

(BusinessDesk)

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