Mooring Systems keen on Cavotec merger

01 Nov 2006

Strong bond: mooring expert's proposed partnership with Cavotec is "logical step"

Vacuum-mooring pioneer Mooring Systems has announced plans for a "reverse takeover" with its Dutch business partner Cavotec to form a top- 50 New Zealand-listed company.    

Mooring Systems managing director  Peter Montgomery has pledged to ring  his 1,000 investors to explain the  proposal, which would entail them  assuming 20% of new company  Cavotec MSL and the remainder going  to existing Cavotec investors. With an  effective date of January 1, 2007, the  transaction has an estimated value of  approximately ¢125m (NZ$250m).  However, at least one shareholder is  arguing the company's board should  hold out for a takeover premium before surrendering control to Cavotec.

Cavotec group chairman and chief executive Stefan Widegren sees the merger as "a logical next step in the evolution of Cavotec", broadening its presence in the Australasian market.

"We expect that this merger will both create substantial value for our shareholders and enable Cavotec to  operate from a strengthened global Introduction of a national ports policy and development of relevant port  infrastructure to support an enhanced coastal shipping operation are key components of the New Zealand Shipping Federation's draft maritime transport strategy.

The 47-page "Roadways to Waterways" document, which was recently given a favourable hearing by Transport Minister Annette King,essentially calls for shipping and ports to gain equilibrium with road and rail in Government funding and policy decisions.

However, the Shipping Federation stresses the proposal does not promote a return to the "cabotage" days of protecting New Zealand shipping against international operators. Following industry consultation, the organisation hopes the strategy will be formally enacted by June 30 next year. platform.

As our customers continue their trend towards globalization, Cavotec remains committed to providing them with correspondingly increased levels of support and service." 

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