MIDDAY UPDATE: Moa shares rise on debut

By Paul McBeth

Nov. 13 (BusinessDesk) - Shares in boutique beer brewer Moa Group rose 8 percent to $1.35 in their first trade after today listing on the NZX. The stock settled back to $1.32 after the initial flurry.

The company raised $16 million, $15 million of which came from institutional investors and clients of NZX firms, and a further $1 million from the public, which was overbid by 124 percent, it said in a statement. The shares were sold at $1.25 apiece.

Priority was given to investors in the public pool of shares pre-registered for the offer, with the remainder missing out.

Moa needs the money to build a new $6.1 million brewing facility, and cover the $1.6 million cost of the float. It expects it will burn through about $4.4 million of that cash by the end of the 2014 financial year, leaving it with cash of $2.9 million.

Mainfreight earnings sink on European woes

Global transport and logistics firm Mainfreight reported a 4.6 percent fall in earnings as its European operations were hit by the slowing regional economy beset with government debt problems.

Profit was $27.7 million, or 27.9 cents a share, in the six months ended Sept. 30, from $29.1 million, or 29.45 cents, a year earlier, the Auckland-based company said in a statement. Sales climbed 4.9 percent to $936 million.

Earnings before interest, tax, depreciation and amortisation in Europe tumbled 50.4 percent to 5.26 million euros as margins shrank in the face of “poor warehouse utilisation and activity, and poorly performing transport operations in Belgium and France.”

The shares dropped 1.9 percent to $10.20 in trading today.

Infratil fattens first-half dividend as energy, airport investments deliver

Wellington-based infrastructure investor Infratil fattened its first-half dividend by 8.3 percent after its energy and airport investments increased earnings in the period.

Earnings before interest, tax, depreciation, amortisation and unrealised changes in fair value (ebitdaf) gained 7 percent to $290.9 million in the six months ended Sept. 30, the Wellington-based company said in a statement.

The firm reported a net loss of $16.5 million, or 2.8 cents per share, compared to a profit of $50.2 million, or 8.3 cents, a year earlier, after writing down the value of its British airports and due to movements in the value of interest rate swaps and energy derivatives.

Infratil will pay an interim dividend of 3.25 cents per share, or $19 million, on Dec. 14, up from 3 cents a year earlier.

The shares rose 0.2 percent to $2.18 today.

Food prices fall in October as spring brings cheap veges

Food prices fell by 0.6 percent in the month of October, spurred by seasonally adjusted falls in the price of tomatoes, lettuces and capsicums, and helped by a 0.5 percent drop in the cost of takeaway and restaurant meals. The Statistics New Zealand Food Price Index showed a 0.3 percent rise to the 12 months to October.

During the October month, grocery prices somewhat offset the falls in fresh produce prices, which were down 5.5 percent from the month before. Soft drinks, plain biscuits, and sweets were among grocery items which gained significantly in price, although discounting wars on chocolate biscuits saw their price fall.

NZ Farming Systems set to delist from stock exchange after Olam takes control

NZ Farming Systems Uruguay is set to depart from the stock exchange after Singaporean commodity investor Olam International succeeded in gaining 90 percent control, allowing it to take the South American dairy farmer private.

Olam had 90.19 percent of Farming Systems, enough to compulsorily acquire the rest, it said in a statement today. It offered 75 cents a share last month to mop up the 14 percent of Farming Systems it didn’t already own, in its second attempt to get to 100 percent of the target after taking control last year.

(BusinessDesk)

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