08 May 2008

There has been significant investment into and out of New Zealand over the past month.

NZX-listed Cavotec MSL Holdings, a subsidiary of international engineering group Cavotec, recently bought aviation fuel and supply systems manufacturer Dabiaco Group as part of its growth strategy in the aviation servicing sector, The Press reported recently. 

Cavotec MSL was formed in 2007, through a merger between Dutch-based Cavotec Group and Christchurch’s Mooring Systems. New Zealand is now one of six international Centers of Excellence for Cavotec, which has evolved from being a component manufacturer to providing fully integrated engineering solutions for the maritime, mining, airport and general industry sectors. 

Hong Kong based Cheung Kong Infrastructure is to invest in Wellington’s electricity network, buying the NZ$785 million company from local company Vector. 

Cheung Kong Holdings is chaired by billionaire Li Ka-Shing, reportedly the 11th richest man in the world with a personal fortune of US$26.5 billion, and has interests in more than 50 countries, spanning telecommunications, airlines, ports and property.

Read these recent stories on the deal, from the DominionPost and Finance Asia.  

New Zealand dairy giant Fonterra announced its purchase of an additional 42.6 percent shareholding in Chilean dairy company Soprole at the end of April. Fonterra will buy the shareholding from minority shareholder Fundacion Isabel Aninat, for US$201.9 million.

The purchase gives Fonterra 99.4 per cent of Soprole, the second-most recognised corporate brand in Chile after Coca-Cola. Chile is a high growth market for the production and consumption of dairy products and Soprole is the country’s leading consumer dairy product business with a more than one-third share of the domestic consumer dairy market.

“Soprole is an example of Fonterra’s strategies of leveraging its cow-to-consumer expertise to build profitable businesses, and also securing new sources of fresh milk around the world,” said Andrew Ferrier, Fonterra’s Chief Executive Officer.

Soprole announced its profit for the 2007 calendar year rose 160 per cent to a record 23.8 billion Chilean pesos, or NZ$66.3 million, in February. The company has, on average, returned around NZ$25 million a year to Fonterra shareholders over the past few years.