Transpacific off to a strong start
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Transpacific Industries Group Ltd (TPI) | 5:16 pm, Tuesday 7 October 2008 | TPI | 8.650 |
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07 October 2008
For Release to Market
TRANSPACIFIC OFF TO A STRONG START
Transpacific is pleased to announce that FY09 has commenced well.
YTD September actual results are ahead of budget and every indication at this time is that we will deliver the double digit growth we forecast.
Consistent with Transpacific’s objective of reducing debt, last week we completed a $40 million placement of shares to a number of our institutional shareholders showing support for the company.
This placement was in lieu of Transpacific’s traditional dividend underwrite which covers the dividend reinvestment plan (DRP) shortfall. A Peabody family related entity accepted shares in lieu of cash by participating in the DRP, reconfirming its continued commitment to Transpacific.
Transpacific has a number of acquisitions in train – we have completed/agreed four in the recycling industry including paper and cardboard recyclers. These cost approximately $35 million in total and were purchased at multiples below Transpacific’s trading multiples. They will add new business and synergies to our recently launched “Harvest” recycling project.
Further the recent interest rate reductions (125 bps) and the improvement in the AUD/NZD exchange rate will assist the company’s profits and cashflows.
Executive Chairman Terry Peabody stated “while times in the financial markets are uncertain, Transpacific is travelling well proving the defensive nature of our businesses”.
About Transpacific Industries Group (ASX: TPI)
Transpacific’s goal is to protect the environment by providing a complete waste management service through waste recovery, recycling and re-use, whilst maintaining a strong commitment to safety and reliability.
Transpacific is the leading Australasian provider of integrated total waste management solutions with operations in both solid and liquid waste management. The company also provides integrated industrial cleaning services, has a growing energy business comprising the refining of used oil into fuel and an established heavy-duty commercial vehicles business.
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