Hirequip decides to sell hire business

Hirequip said today it had decided to sell its hire equipment business following a review of the unit, and was likely to return the money to shareholders.

Hirequip, which is buying Christchurch-based hire equipment company Laings Hire, will allow an unspecified number of parties to undertake due diligence and expects to make a further announcement in the next five to six weeks, chairman Graeme Wong said.

The sale, to capitalise on interest in the hire sector, would leave the company with interests in property, biotechnology companies and Tasman Farms, a similar portfolio to its previous incarnation as Southern Capital.

"I don't think we're going to rush out and suddenly turn the business on its head and buy an automotive business or a forestry business or anything like that," Mr Wong said. "Return the money to shareholders, that's the base case."

Shareholders include Hirequip founder Stuart McKinlay with about 25 per cent, and Mr Wong with 6.7 per cent.

Last month, Goldman Sachs JBWere NZ sold its 51 per cent stake in smaller rival Hirepool to Australian private equity firm Next, for $172 million. Next took an 80 per cent stake, with the balance held by Hunter Powell Investments and senior Hirepool management.

"Without question, the level of interest that has been around is partly the fact that Hirepool sold, and they seem to have attracted quite a few parties into the industry here to look at Hirepool," Mr Wong said.

In March, Hirequip was the subject of an unsuccessful market stand by Willpro, including three former Brierley executives, which closed short of its 19.9 per cent target at 13 per cent. Mr Wong is also an ex Brierley exec.

Shares in Hirequip, the largest hire business and only listed player, were steady at $1.20.

- NZPA