Rangatira sells its 50% stake in Contract Resources
27 December 2012
Wellington investment company Rangatira today announced that it has entered into a conditional agreement to sell its 50% share of Contract Resources Holdings Limited (Contract Resources) to Hellaby Holdings Limited (Hellaby).
Rangatira’s involvement with Contract Resources dates from 2004 and since that time the company has substantially expanded both its operations and returns, becoming one of Rangatira’s two largest investments. Recently some shareholders expressed a wish to exit their shareholdings and, following a competitive sale process, Hellaby Holdings offered to acquire an 85% stake in the company.
Rangatira CEO Ian Frame commented, “While we have not been looking to sell, Contract Resources has grown to represent more than a third of our unlisted investment portfolio. With some of our initial partners selling and Hellaby’s offer for control at an attractive level, we have decided it is an appropriate time to realise the funds of just over $50 million for reinvestment into other growth opportunities.”
Subject to finance and other conditions being satisfied, the sale is expected to be concluded on
31 March 2013.
Rangatira Chairman Murray Gough said, “In its half year report Rangatira’s Directors indicated to shareholders that the Net Asset Value of its shares, including the mid-point of their assessment of the unlisted companies, was $9.26 at 30 September 2012 compared to $8.77 at 31 March. Assuming the CRL sale becomes unconditional, and taking account of the performance to date of Rangatira’s listed share portfolio and its unlisted investments, the Net Asset Value of Rangatira’s shares at 31 March 2013 is likely to exceed $10.00.”