The receivers of South Canterbury Finance have confirmed the sale of Helicopters New Zealand to Canada's largest heli-operator has been completed for $154 million, $6 million less than expected.
Helicopters New Zealand (HNZ) was an asset ceded to South Canterbury Finance by the finance company's founder, Allan Hubbard, who now faces up to 50 fraud charges laid by the Serious Fraud Office.
HNZ was founded in 1955 with one helicopter, grew to a fleet of 38 which operated in New Zealand, Australia, Southeast Asia and the Antarctic. For the year to December, its revenue was $83 million and earnings before interest, tax, depreciation and amortisation was $28 million.
The 33 helicopters it owned had a valuation of $137 million.
Receivers Kerryn Downey and William Black, of McGrathNicol, said yesterday the sale to Canadian Helicopters was completed, with the $6 million reduction from the announced $160 million "primarily due" to the exclusion of HNZ's share in joint venture company Glacier Helicopters Ltd.
The Glacier Helicopters shares have been retained by HNZ "pending the outcome of sale negotiations", the receivers said.
The overall HNZ sale was a positive step for the company, which would now focus its attention on growing the business "under a new stable ownership structure" of the Canadian company.
Toronto stock exchange-listed Canadian Helicopters is that country's largest helicopter transportation service company, with more than 35 bases and 122 helicopters servicing infrastructure maintenance, utilities, oil and gas, mining, forestry, construction, emergency medical and military support sectors.
