New Zealand’s corporate scene is set to be abuzz with mergers and acquisition activity until the end of the year, with several sale processes and deals ramping up.
On offer are Vector Metering, Suncorp’s New Zealand life insurance unit and Bupa’s New Zealand aged-care business.
New Zealand-listed payments company Pushpay also remains a takeover target.
Interested buyers of Vector’s $NZ3bn ($2.7bn) portfolio of smart meters are expected to receive information memorandums for the sale next week.
The process is being handled by Barrenjoey and Citi, and so far the keenest buyer is believed to be Singapore-listed Keppel Infrastructure, which is working with advisory firm Jarden.
Also lining up is Queensland Investment Corporation, advised by Craigs.
Igneo Infrastructure Partners is another group that may line up for the business.
Underbidders for the Intellihub smart-meter business that was for sale last year included BlackRock and Stonepeak.
BlackRock is expected to sit out the Vector process, while Stonepeak may emerge.
Vector Metering generated $NZ172m of earnings before interest, tax, depreciation and amortisation for the 2021 financial year and Vector may opt to sell all or part of the business.
Meanwhile, investment bank UBS is expected to launch a sale of Suncorp’s life insurance business in the final quarter of this year.
The business operates under the Asterton Life brand, which offers trauma, income protection, total and permanent disability and business cover.
Suncorp sold its Australian life insurance operations in 2018 to Japanese financial giant Dai-ichi for $725m.
Dai-ichi recently purchased New Zealand life insurance business Partners Group in a deal putting a $NZ1bn valuation on the company, of which private equity firm Blackstone is a major shareholder.
Some believe Dai-ichi may have been a logical buyer for Asteron Life, but perhaps it will no longer be in the line-up of potential bidders after swallowing Partners.
Suncorp is moving now on the New Zealand arm after agreeing a $4.9bn deal to sell its bank to ANZ, in a deal that has consumed the financial services bankers at UBS for months.
While Partners may have netted a large Japanese buyer, sources believe that a Japanese group is also taking a look at Bupa New Zealand’s aged-care business, which is up for sale through Macquarie Capital.
Market analysts expect the business would carry a price tag of between $NZ200m and $NZ500m.
Meanwhile, it may be radio silence since BGH Capital first emerged as a suitor for New Zealand payments company Pushpay in May, but the Australian-based private equity firm is still believed to be working on a bid for the company.
Sources say a buyout of the donor management system company remains on track.
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