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NZ Post mulls sale of Australian unit

New_Zealand_PostNew Zealand Post is considering the sale of its Australian mail and record management outsourcing unit, Converga.

The state-owned mail service hired consulting firm 333 Capital to help with a potential sale after receiving a number of approaches from possible buyers, NZ Post chief financial officer David Walsh told BusinessDesk.

“We’re not in a fire sale, we’re doing this only if it values up well,” Walsh said.

“One thing to make clear, we haven’t made a final decision to sell, but it is going to be heavily dependent on price and the strength of the partner buying.”

NZ Post is looking to pare back traditional letter delivery services, moving to alternate day delivery for standard letters in urban areas from July and shutting dedicated shops in favour of agency and kiosk services.

The company is two years into a five-year transformation plan.

It took a stake in Converga in 2004, when it was known as Outsource Australia, before taking full control in 2007.

Last year it added Speedscan to the business.

In the six months ended December 31, NZ Post wrote down the value of its investment in Converga by $NZ23 million ($A20.74 million) to $NZ26 million ($A23.44 miilion) after the business lost a major customer.

BusinessDesk

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