New Zealand Post sells its share in Datacom
New Zealand Post has signed a conditional sale and purchase agreement to divest its 35 percent shareholding in information and technology company Datacom Group Ltd (Datacom).
New Zealand Post is selling its shareholding to The Guardians of New Zealand Superannuation (NZ Super Fund) for a total purchase price of $142 million. The transaction will result in a gain on sale of $76.4 million.
New Zealand Post Group CEO Brian Roche said the sale of the shares in Datacom is a move out of necessity given other capital priorities within the New Zealand Post Group.
“Datacom is a tremendously successful New Zealand company which has established a strong presence here, in Australia and most recently in Asia. We have enjoyed a strong relationship with Datacom since 1990 and will continue to do so.
“However having a significant amount of capital locked up in a minority shareholding does not meet the current strategic needs of the New Zealand Post Group,” said Mr Roche.
New Zealand Post intends to utilise the proceeds from the sale for restructuring the Group’s debt position and funding strategic investments in its businesses.
“New Zealand Post has been delighted to have been part of the excellent growth and innovation of Datacom.
“However, the strategic imperatives facing New Zealand Post to position our businesses and assets for the future mean we are required to apply this capital elsewhere.
“New Zealand Post is a significant customer of Datacom and ongoing contractual relationships will continue as part of a strong business relationship,” Mr Roche said.
Mr Roche said NZ Super Fund was a highly suitable purchaser of the New Zealand Post share and the transaction would be a good outcome for the Group and the wider New Zealand business sector.
The Sale and Purchase agreement is subject to certain conditions including Australian Foreign Investment Review Board approval.