New Zealand’s Direct Capital takes majority stake of Scales Corp.
Auckland-based private equity firm Direct Capital will take a 79.7% stake in local apple exporter and cold storage company Scales Corporation for $44 million, purchasing the asset from South Canterbury Finance, which has been under the receivership since August 2010.
The sale will follow an agreement by South Canterbury to offload Helicopters NZ to Canadian Helicopters, a transaction worth $160 million. Kerryn Downey of McGrathNicol, who has been appointed as the one of the company’s receivers, said Scales Corp.’s sale price will be $2 a share. He publicly noted that, despite of the lower pricing, Scales still represented a solid deal under its parent’s circumstance, bearing in mind it was a private equity purchase. Both sale assets that the New Zealand financial group is offloading are non-core assets, categorized as separate from its core finance business.
News of the exits first emerged in February of last year, when owner Allan Hubbard aired his plans to boost South Canterbury’s equity.
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