- Several important announcements have been made on the NZX Thursday.
- Seeka announced the acquisition of OPAC.
- WHS reports a record performance for 1HFY21.
- MHS gives a list of new projects in the pipeline.
Corporate New Zealand is busy these days as it is making some announcements every day on the NZX. They are significant announcements related to Company performances, merger, acquisition plans, new product portfolio, sales update, and dividends.
On March 25 also, several companies made major announcements related to their businesses on the NZX. Let’s have a look at some of the most important announcements.
Seeka Limited (NZX:SEK)
SEK announced on Thursday that it had acquired an integrated kiwifruit company called Opotiki Packing and Cool Storage Limited (OPAC). The total transaction value of this acquisition is estimated to be NZ$59M and this will done by Seeka issuing additional shares of approximately NZ$33.94M at 1.4833 per OPAC share held. The rest will be through debt.
Through this merger, Seeka will be able to grow and package Kiwi fruit across New Zealand. While the boards of the two companies have approved the merger, it will be completed only after the approval by the OPAC shareholders in a meeting to be held on April 13, 2021.
On March 25, 2021, the stock was trading up by 2.73%, at NZ$ 4.900, at the time of writing.
The move will also require Seeka shareholders’ approval in an ASM to be held on April 16, 2021. While announcing the merger, OPAC Chairman, Tony de Farias, said that the merger would bring two partners with similarities in ownership structures together. The merged company will be able to deliver better in terms of technology and efficiencies.
The Warehouse Group (NZX:WHS)
The Warehouse Group (NZX:WHS) reported a record 1HFY21 performance despite the disruptions caused by the COVID-19 pandemic. The interim results announced on Thursday revealed a net profit after tax at NZ$111.0M, up by 140%, over the previous corresponding period.
Group sales were up by 7.4% and as expected, showed a spectacular growth in online sales by 50.3%. Different brands associated with WHS contributed to the overall performance. While the Warehouse Group Suffered during Level 3 lockdown in Auckland and other parts, sales picked up in the second half. Its other brand, Warehouse Stationery, was strong and delivered record profits. Noel Leeming also did well, reflecting a sales growth of 15.7%. Online sales growth in this segment was a major contributor. The stock was trading up by 2.74%, at NZ$3.750, at the time of writing.
Also Read: Kiwi Retail Sector And 5 Related Stocks- WHS, HLG, BGP, KMD, MHJ
The stock was trading up by 2.74%, at NZ$3.750, at the time of writing.
MHM Automation Limited(NZX:MHM)
This company, which deals with logistics and food processing in its trading update for the quarter, revealed that it had secured several orders, including a major NZ$13M contract for three SSO plate freezers to an Australian red meat exporter, for the dairy industry, a contract for delivery of stainless silos, for US customers, an order for three Beta cheese vacuum packers, a bin handling system for pet food company based out of New Zealand. The orders are in various products and from across geographies in line with MHM strategy to diversify.
With such projects and more, the Company stands confident about its increased profitability and guidance for the rest of the year.
The stock was trading up by 7.14%, at NZ0.74%, at the time of writing.
Oceania Healthcare Ltd (NZX:OCA)
OCA announced the opening of its non-underwritten retail offer as a part of its equity raise initiative of NZ$100M. The retail offer is for NZ$20M with a potential of over subscription. OCA announced its equity raise initiative on March 23, 2021, which was to have two components: institutional placement of NZ$80M, which it completed on Wednesday, March 24, and retail offer, which it announced Thursday.
As a part of the Retail Offer, each shareholder of Oceania in NZ can subscribe up to NZ$50,000 worth of new ordinary shares in Oceania. The offer price will be at a discount of 2.5% of the price offered for placement offer. That price happened to be NZ$1.30 a share on issue.
The eligible shareholders can apply manually or online. A Retail Offer booklet, together with an application form, will be sent or made available to the NZ shareholders on Thursday. The last date for applying is 12 April 2021.
The stock was trading down by 0.75%, at NZ$ 1.320.
The City of London Investment Trust Plc (NZX:TCL)
TCL announced an interim dividend of 4.80 cents per share for the year ending June 2021. The dividend will be paid on May 28, 2021, and the ex-dividend date is April 29, 2021. The board also declared its intention of giving a fourth interim dividend to be declared in July.
The Board intends to declare a fourth interim dividend of similar amount of 4.80p per share for the year to 30 June 2021. This will make the total payout for the shareholders to be 19.10 cents per share given in four interim dividends.
The stock was trading flat at NZ$ 7.380.
Westpac Banking Corporation (NZX:WBC)
WBC announced on Wednesday a consolidation strategy for its businesses. For Westpac NZ, it is assessing whether a demerger would be in the interest of business. This also includes assessing the impact of RBNZ reviews. While its NZ business has been performing well in retail and commercial segments, WBC announced on Wednesday that due to the changing norms of RBNZ on capital requirements, it needs to assess the structure and what would be in the best interests of the Bank.
On March25, 2021, the stock was trading down by 0.11%, at NZ$ 26.320, at the time of writing.