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

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news