Pacific Aerospace's $4m boarding call

By PAUL PANCKHURST

Aircraft maker and exporter Pacific Aerospace Corporation is opening up to new investors and may eventually taxi in for a stock exchange listing.

The Hamilton company's flagship PAC 750XL aeroplane targets the adventure skydiving market and sells for $1.5 million.

Auckland firm Staples Rodway Corporate Finance is asking wealthy private investors to put $4 million into the company.

Owner and managing director Brian Hare said the money would repay debt and provide working capital.

Colin Theyers, of Staples Rodway, said four or five investors were in advanced stages of discussions on putting money into the firm.

"We think we've got the $4 million, but nothing is certain until it is signed."

The aim was to have a deal nailed down by the end of the month.

Hare said a stock exchange listing was among the company's general aims, but he would not talk about possible timing.

"It's just a question of when it's appropriate."

Hare said the new investors were likely to take 20 to 25 per cent of the company.

Staples Rodway says that would be through Hare selling shares or, more likely, the issue of new shares.

In March, the Federal Aviation Administration in the United States granted certification to the PAC 750XL - a first, the company said, for a New Zealand-designed and built aircraft.

Last month, Pacific Aerospace announced a Canadian joint venture under which aircraft would be partly assembled in Hamilton, then shipped to a plant near Montreal.

Hare said the company expected revenue of $20 million to $25 million this financial year, and the amount could double in the following year.

In March, the company said it had export orders of more than $440 million - a figure that varies according to the strength of the US dollar - over the next 10 years, and it planned to triple in size over three to five years.

The company believes the PAC 750XL is "the first new aircraft built in the last 25 years specifically to target the burgeoning adventure skydiving market".

A Trade New Zealand export award has been one of the pats on the back.

One point of confusion - which the Business Herald could not clarify last night - was a suggestion that another firm, besides Staples Rodway, was also talking to possible investors.

Pacific Aerospace

Aircraft engineer and manufacturer.

Based at Hamilton Airport.

Owned by Brian Hare.

Products: CT/4 trainer, Cresco cropduster, PAC 750XL utility.

Revenue: $20m-$25m, forecast to double next year.