Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Inghams sale process continuing, no agreement with buyer

Inghams says sale process continuing, yet to reach agreement with buyer

By Jonathan Underhill

Jan. 9 (BusinessDesk) – Inghams Enterprises has yet to find a buyer for Australasia’s biggest chicken producer, which owner Bob Ingham put up for sale last July with a price tag reportedly of A$1.4 billion.

“We’ve not agreed to sell the business or got an agreed buyer,” Paddy Watts, Inghams financial controller, told BusinessDesk. “We were hoping to have it done by now but it has not got to that stage yet.”

“There’s people interested in it,” he said. “The business will be sold” though it isn’t going to happen this week. The process had slowed over the Christmas holiday period, he said.

International Financing Review reported on Dec. 21 that private-equity firm Blackstone Group had dropped out of the bidding, leaving possibly one group still showing interest. Reuters reported in November that Chinese agribusiness company New Hope Group was the other firm to proceed to the final round of bidding for the business.

Others to show interest before withdrawing had included Hong Kong-based Affinity Equity Partners, Bain Capital and KKR while Thailand's CP Foods placed a preliminary bid before withdrawing, Reuters reported.

New Hope has been adding to primary production assets Down Under, and was part of a group with Agria and Ngai Tahu Holdings that teamed up to take a controlling stake in PGG Wrightson, New Zealand’s biggest rural services company.

Bob Ingham, who turned 81 last year, hired Investec Bank to manage the sale, which had been expected to take only a few months. He inherited the chicken business from his father in 1953, building an empire that gave him the resources to indulge a passion for horse breeding and training.

Affinity owns Tegel Foods, the biggest chicken producer in New Zealand, and there had been speculation it would have been forced to sell that business, acquired from PEP in 2010 for A$470 million, to satisfy antitrust regulators. Inghams is the number two producer in New Zealand as well as the nation’s biggest producer of stock feeds.

The New Zealand unit of Inghams posted its annual results this week. Profit in the year ended June 30 about doubled to $22.96 million from $11.2 million. Sales rose about 5 percent to $336 million. The results showed the company more than halved its administration costs to about $9 million, though gave no details.

Watts said the company wouldn’t comment on the results though the New Zealand business was “ticking along fine.”

The earnings allowed Inghams Enterprises (NZ) to pay a dividend of $12 million, versus zero a year earlier. It plans to use $50 million of an unsecured loan from its Australian parent to fund a capital return via a share purchase and cancellation, the company said. It gained approval from the Inland revenue Department for the transaction in August.

Inghams employs more than 8,000 people at more than 100 locations across Australia and New Zealand.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news