{"id":51412,"date":"2006-04-11T09:56:11","date_gmt":"2006-04-10T23:56:11","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2006\/04\/11\/nz-hire-business-set-for-consolidation\/"},"modified":"2006-04-11T09:56:11","modified_gmt":"2006-04-10T23:56:11","slug":"nz-hire-business-set-for-consolidation","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2006\/04\/11\/nz-hire-business-set-for-consolidation\/","title":{"rendered":"NZ Hire Business Set For Consolidation?"},"content":{"rendered":"<p class=\"MsoNormal\"><span>Rumours that New Zealand building equipment hire firm Hirepool may soon be up for sale have surely placed Hirequip New Zeeland (HQP.NZ) in a quandary. <span>\u00a0<\/span><\/span><\/p>\n<p \/>\n<p class=\"MsoNormal\"><span><\/span><\/p>\n<p class=\"MsoNormal\"><span>On Credit Suisse&#8217;s calculations, Hirepool could be available for between NZ$55m and NZ$100m, with the analysts estimating Hirequip &quot;could pay up to NZ$87m for the equity in Hirepool without any negative impact on earnings,&quot; and these numbers assume no synergies from any potential deal. <\/span><\/p>\n<p \/>\n<p class=\"MsoNormal\"><span><\/span><\/p>\n<p class=\"MsoNormal\"><span>However, it may not be all plain sailing for Hirequip, as the analysts point out that Coates Hire (COA) is another potential buyer. <\/span><\/p>\n<p \/>\n<p class=\"MsoNormal\"><span><\/span><\/p>\n<p class=\"MsoNormal\"><span>This deal, if it were to materialise, could potentially create two problems for Hirequip, the analyst say, firstly with Coates&#8217; backing Hirepool would be seen as a &quot;significantly more difficult competitor,&quot; and if the deal was done, given potential Commerce Commission concerns, the analysts are of the view that the &quot;potential for a Coates acquisition of HQP is reduced.&quot;<\/span><\/p>\n<p \/>\n<p class=\"MsoNormal\"><span><\/span><\/p>\n<p class=\"MsoNormal\"><span>However, the analysts have cut their recommendation on the stock to Neutral, given recent relative share price movements. <\/span><\/p>\n<p \/>\n<p class=\"MsoNormal\"><span><\/span><\/p>\n<p class=\"MsoNormal\"><span>ABN Amro still rates the stock a Buy<\/span> as it expects the strong management team to take advantage of the company&#8217;s dominant market position in the New Zealand hire business. (see previous story)<span><\/span><\/p>\n<p \/>\n","protected":false},"excerpt":{"rendered":"<p>Rumours of a possible Hirepool sale create positives and negatives for NZ&#8217;s Hirequip.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/51412"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=51412"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/51412\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=51412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=51412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=51412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}