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

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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