Today in Business

Today in Business: August 12, 2025


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Welcome to Today in Business - Powered by Spark for Business, an experimental AI podcast by the New Zealand Herald.
Each weekday, we bring you five stories, the best of the New Zealand Herald business journalism, summarised and delivered by an AI voice as an easily digestible recap.
It's Tuesday, August 12, 2025, and here are five stories you should know about.
Spark has sold 75 percent of its data centre operations to Australian private equity firm Pacific Equity Partners in a deal valuing the business at $705 million. Spark will receive 486 million dollars upfront, with a potential 98 million dollars more in 2027 if performance targets are met. Proceeds will go toward debt reduction, with net debt at $2.74 billion as of December 31, 2024. A new company, DC Co, will run the centres, with Spark retaining 25 percent. The sale values the business at 38.8 times forecast operating earnings. Shares were steady at $2.61. Pacific Equity Partners manages more than A$14 billion.
In other news, improved farm profitability has boosted PGG Wrightson's annual net profit to $10.7 million, up 248 percent, on 975 million dollars revenue. Operating earnings rose 27 percent to $56.1 million. The rural services group declared a final dividend of 4 cents per share, taking the full-year payout to 6 and a half cents. Chairman Garry Moore says constrained livestock supply and higher commodity prices have improved farm margins. The retail and water group revenue rose $39.4 million. Shares climbed 5.3 percent to $2.59. Chief executive Stephen Guerin says farmers largely used increased returns to reduce debt while investing in production improvements.
Elsewhere, Alliance Group says Ireland-based Dawn Meats may acquire 65 percent of its business for $250 million, valuing the co-operative at $502 million. The deal requires farmer shareholder, High Court, and regulatory approvals. Proceeds would repay $200 million in debt, fund capital projects, and allow up to $40 million in distributions. Dawn Meats processes more than 3.5 million sheep and 1 million cattle annually across 10 countries. Alliance, New Zealand's largest sheep meat exporter, reported a $95.8 million loss last year as turnover fell to $1.8 billion. The vote on the proposal is scheduled for mid-October in Invercargill.
Meanwhile, the BusinessNZ Energy Council and Optima warn New Zealand's industrial gas market faces severe pressure, with nearly half of surveyed users cutting operations, jobs, or raising prices due to rising costs. Fertiliser maker Ballance Agri-Nutrients may halt its Kapuni plant without affordable supply. Prices have doubled in five years, with a quarter of businesses paying $25 or more per gigajoule. Most contracts expire by 2027. More than forty percent say switching to alternative fuels is not viable within five years. The Government is reversing the 2018 oil and gas exploration ban, and has allocated $200 million to aid exploration and supply.
And finally, Westpac's chief economist says New Zealand's recovery is continuing broadly as expected despite uncertainty over US tariffs. Kelly Eckhold describes the recent decision to impose 15 percent tariffs on New Zealand exports to the US as disappointing, but manageable. Annual GDP growth is expected to strengthen, supported by high export prices and lower borrowing costs. Eckhold says about half of mortgage holders have yet to benefit from rate cuts, with many refinancing in the coming months. Inflation is expected to be near the top of the Reserve Bank's 1 to 3 percent target band in the second half.
That was Today in Business - Powered by Spark for Business - your NZ Herald daily business summary. For the best in business, subscribe to Herald Premium at nzherald.co.nz.

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Today in BusinessBy NZ Herald