Comvita deal leads local shares up
New Zealand shares rose, led by Comvita on the back of its plans to take control of its Chinese distribution, while Air New Zealand and Mercury NZ also gained.
The S&P/NZX 50 Index rose 65.73 points, or 0.9 percent, to 7,491.84. Within the index, 36 stocks rose, 10 were unchanged and five fell. Turnover was $182 million.
Comvita was the best performer on the index, up 6 percent to $10.60. The New Zealand manuka honey products company plans to acquire 51 percent of its Chinese distributor in a $30m all-stock deal that will see the owners of Shenzhen Comvita Natural Food Co lift their holding in Comvita to more than 11 percent.
The deal is expected to be earnings accretive for Comvita in the first year, excluding one-time costs.
Air New Zealand gained 3.3 percent to $2.35.
Steel & Tube Holdings will drop out of the S&P/NZX50 benchmark index on Sep 16, along with rubber goods company Skellerup.
Agribusiness group Scales Corporation and cinema software developer Vista will replace them.
Vista more the doubled its profit in the first half of its financial year due to increased revenue from acquisitions, while Scales saw net profit rise 3 percent to $33.8m in its first half. Vista rose 2.9 percent to $6.80 and Scales rose 3.1 percent to $3.33.
Steel & Tube shares gained 1.4 percent to $2.22, while Skellerup was unchanged at $1.36.
Mercury NZ climbed 2.6 percent to $3.32, Tower rose 2.6 percent to $1.37, and Spark New Zealand advanced 2.4 percent to $3.885.
Contact Energy was the worst performer, down 2.5 percent to $5.05, while Z Energy dropped 0.5 percent to $8.30.
Orion Health Group dipped 0.2 percent to $4.08.
Outside the main index, Wynyard Group dropped 4.2 percent to 23 cents. It's down 87 percent this year.