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A plan by Hirequip to sell its core equipment-hire business appears closer to getting the necessary approval, with key shareholder Willpro Holdings saying it will support the deal.
Willpro - a joint venture between investment firm Active Equities and Timaru businessman Allan Hubbard - is the second largest shareholder with 13.3 per cent, according to Hirequip's 2006 annual report.
Active Equities executive director Paul Collins said he would back the deal, which will be voted on at a December 18 meeting.
Hirequip plans to sell the business to PES Finance, associated with Nikko Principal Investments, for $165 million with a possible additional $7.5 million depending on performance during the rest of the financial year.
The deal needs more than 50 per cent shareholder approval and between chairman Graeme Wong, director Stuart McKinlay and Willpro, it can already expect about 45 per cent.
Interest in a sale by Hirequip was sparked by the sale of rival firm Hirepool in July, although the Hirequip price has been labelled a lower multiple at an earnings before interest, tax, depreciation and amortisation level.
The Hirequip board has assessed the net asset value at $1.18 to $1.24 a share, depending on how much of the additional $7.5 million is achieved and the realisation of legacy assets.
Following a completed sale, the legacy assets would include a portfolio of biotechnology stocks, interests in an Omaha Beach subdivision, a 22.6 per cent holding in Clifford Bay Marine Farms and the leasehold and freehold interests in Hirequip sites owned by Hirequip Property.
Hirequip's share price closed up 1c yesterday at $1.12c.
