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

 


Satara-EastPack merger back on after two-year hiatus

Satara-EastPack merger back on after two-year hiatus

Feb. 4 (BusinessDesk) - Kiwifruit growers Satara Cooperative Group and EastPack are set to resume merger plans shelved after the outbreak of the Psa vine bacteria two years ago.

The deal will see Satara grower shareholders receive one EastPack share for each dollar paid-up of the transactor or investor share, and receive a 5 cent fully imputed special dividend, valuing the deal at 65 cents. That's a 63 percent premium to Satara’s current trading price.

Non-grower shareholders will be paid out 60 cents per share, a 50 percent premium, with the merged grower-controlled entity set to be de-listed from the stock exchange's small-cap NZAX.

"The merged company will be totally focused on grower owners' needs, and in a better position to meet their expectations for quality processing, higher orchard gate returns, low packing prices and improved return on investment," Satara chairman Hendrik Pieters and EastPack chair Ray Sharp said in a joint statement.

"We believe that by combining resources, we can reduce costs and operate more efficiently for the benefit of growers," they said.

The companies were set to merge in 2010 until the outbreak of Pseudomonas syringae pv actinadiae scuttled those plans. The financial impact of the disease on the kiwifruit industry was estimated at between $310 and $410 million over the next five years by a Lincoln University study last year.

The merged group is expected to account for between 27 percent and 30 percent of the country's kiwifruit volumes with annual turnover of more than $112 million, and hopes to have greater influence on export marketer Zespri International.

Each company will hold a special shareholders' meeting on Feb. 22 with a view to amalgamate by March 15.

Satara shares were unchanged at 60 cents today.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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