Hirequip offer extended until today

Timaru millionaire businessman Allan Hubbard and his partners are aiming to snap up a near 20 per cent stake in Hirequip New Zealand, but they say they are not planning a takeover of the equipment hire company.

Willpro Holdings - a joint venture between Hubbard and investment firm Active Equities - has offered 93c a share for a 14.5 per cent stake in the company to take its total interest to 19.9 per cent.

The offer, which was due to close yesterday, has been extended until 5pm today with acceptances reaching around 14 per cent yesterday.

Once a shareholding reaches 20 per cent the stakeholder must launch a full or partial take over, or seek shareholder permission for smaller increases in stock.

However, Active Equities executive director Paul Collins said the company had no intention of making a full takeover. "It's simply a portfolio stake."

The move is being seen as more of a passive play to take advantage of a dip in the share price.

An industry source said little value had been attributed to legacy assets, including property, marine farming and biotechnology interests, owned from the backdoor listing of Hirequip into Southern Capital in 2003.

Collins said discussion on the market stand had been under way since last year.

Hirequip shares closed at 93c, up 12c from the price before the stand in the market was announced.

Collins said although the economy could put some pressure on the company during the next 12 to 24 months, Willpro could see longer-term value in Hirequip.

One-off costs related to an efficiency initiative had cut into Hirequip's half-year profit to December, which was $1.1 million down from $3.7 million a year earlier.

Collins said: "Quite often when you undertake those programmes, the initial costs can be significant but the benefits you derive over a two to three year timeframe can also be considerable."

Active Equities is an investment firm set up by former Brierley executives Collins, Patsy Reddy and Bruce Hancox.