New Zealand Superannuation Fund purchases 35% stake in Datacom
POSTED ON: 17 December 2012
The New Zealand Superannuation Fund has reached a conditional agreement to purchase New Zealand Post’s 35% stake in technology services company Datacom (www.datacom.co.nz) for $142 million.
GM Investments Matt Whineray said Datacom was a New Zealand success story with further growth potential both locally and overseas.
“Datacom’s conservative balance sheet and long-term investment focus are well suited to the Fund’s approach as a long-term, growth-oriented investor,” Mr Whineray said.
“We have also been impressed by Datacom’s strong management team, deep, long-term customer relationships and track record of earnings growth.”
Mr Whineray said a wide range of investment options were open to the Fund. “It’s pleasing to be able to secure a sizeable New Zealand investment that stacks up against the best in the world.”
“We look forward to working with Datacom’s major shareholder, the Holdsworth family, to continue Datacom’s success.”
The $20 billion New Zealand Superannuation Fund, which was established to help pre-fund universal superannuation entitlements, has returned 7.6% p.a. since inception in 2003. The Fund has $3.7 billion of its investments in New Zealand, up from $2.4 billion as at 30 June 2009.*
Recent New Zealand investments include a 50% share of Z Energy, a one-third share in Scales Corporation and a $110 million portfolio of rural dairy farms.
The Fund will manage its shareholding in Datacom, a privately-held company with 4,000 staff and sales of more than $785 million annually, in-house.
The agreement is expected to become unconditional in early 2013.
* as at 31 October 2012 and excluding cash and foreign exchange hedging instruments.
Media contact: Catherine Etheredge, Head of Communications, NZ Super Fund, 0274 777 501, [email protected]