Transpacific Industries says it will sell its New Zealand waste management business to the Beijing Capital Group for $950 million.
The Australian company bought the rubbish collector, the formerly listed Waste Management business, in 2006 in a controversial $880 million buyout.
Transpacific says Beijing Capital is a long-standing member of China's Top 500 Enterprises with specialist expertise in water treatment, waste management, mass transit railways and toll roads.
Transpacific chief executive Robert Boucher says the sale will give his company increased flexibility and it will be able to consider paying dividends again.
The New Zealand business hasn't prospered under Australian ownership. When the current sale process began in October last year, it was forecast to post operating earnings of about $110 million this year.
That means the sale price is 8.6 times earnings.
Before the takeover nearly nine years ago, it was expecting annual operating earnings to be about $95 million.
Transpacific expects the sale will be completed by the end of June, subject to the consent of the New Zealand Overseas Investment Office and Chinese regulators.
