By PAUL PANCKHURST
Automotive parts supplier Repco may be listed on the New Zealand stock exchange before the end of November in a transtasman share float expected to raise about $550 million.
Investment bank Credit Suisse First Boston is running a dual sales process in Australia for Repco's owner, a private equity consortium of GS Private Equity, Gresham Private Equity and Macquarie Direct Investment.
Repco has 413 stores in Australia and New Zealand and is lifting its profile with a television campaign that says, "Cars are our life too".
The options are for a trade sale or a float. Plans for the latter are well advanced, with initial presentations to brokers possible within two weeks.
The company's primary listing would be in Australia.
The joint lead managers for the issue would be UBS Warburg and ABN Amro Rothschild. The co-managers in New Zealand would be First NZ Capital Securities and ABN Amro Craigs.
The private equity consortium bought the company, then Automotive Parts Group, from Pacific Dunlop in September 2001 for A$255 million. Management also took a minority stake.
At the time, the consortium said it was injecting A$75 million of additional capital to improve operating efficiency and fund future expansion.
Repco this month reported earnings before interest, tax and amortisation for the year to June 30 of A$55.1 million ($62.7 million), up 12 per cent on the previous year.
The result was on sales of A$742 million. Net profit after tax was A$25 million.
The float of courier company Freightways, due to list on the stock exchange on Monday, is another example of private equity investors selling down.
Repco
* Transtasman car parts retailer, founded 1922.
* Brands: Repco Australia, Repco New Zealand, Motospecs, Ashdown.
* 71 stores in NZ.
* Listed on ASX 1937.
* Management buyout 2001 for A$255 million.
* Current owners: Gresham Private Equity, GS Private Equity, Macquarie Direct Investment and management.
Repco plans float in NZ
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