The New Zealand Superannuation Fund has reached a conditional agreement to purchase New Zealand Post’s 35% stake in Datacom for $142 million.
The Fund says it will manage its shareholding in Datacom, a privately-held company with 4,000 staff and sales of over $785 million annually, in-house.
GM Investments Matt Whineray says the technology services company 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,” Whineray says.
“We have also been impressed by Datacom’s strong management team, deep, long-term customer relationships and track record of earnings growth.”
Whineray also says 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," he says.
“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 agreement is expected to become unconditional in early 2013.