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

 

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news