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

 


Pengxin, Synlait founders offer $85.7M for Synlait Farms

Pengxin, Synlait founders make $85.7 mln offer to take over Synlait Farms

By Paul McBeth

Oct. 18 (BusinessDesk) - Shanghai Pengxin, which bought the Crafar family farms in a controversial deal last year, and the Synlait founders are offering $85.7 million to buy South Island dairy farmer Synlait Farms.

SFL Holdings, a joint venture between Pengxin and Synlait Farms chief executive Juliet Maclean and director John Penno, is offering $2.10 a share to Synlait Farms investors in a full takeover bid for the company which operates 13 dairy farms and a total herd of almost 13,000 cows. That’s a 31 percent premium to the $1.60 price the shares last traded at on the Unlisted platform.

If the takeover is successful, SFL plans to inject a further $20 million in fresh capital to reduce debt and accelerate investment. It also plans to reinvest all surplus cash to fund further growth. Penno and Maclean will hold about 26 percent of SFL, with Pengxin owning the rest via New Zealand Standard Farm, a subsidiary of its Milk New Zealand unit.

The deal emerged after Synlait Farms’ board assessed several proposals to strengthen the company’s balance sheet and fund future growth. Synlait Farms founders Penno, Maclean and Ben Dingle have agreed to sell their 50.2 percent stake into the offer.

“NZ Standard Farm’s proposal was assessed by the board as being the most attractive and the highest value proposal received, and we are pleased that Juliet and John have joined NZ Standard Farm in the partnership through SFL Holdings,” chairman Barry Brook said in a statement.

The formal takeover offer is expected to be made next month, with an expected initial closing date of Dec. 6. The offer will be conditional on SFL achieving 90 percent ownership and approval from the Overseas Investment Office.

Pengxin’s purchase of the 16 Crafar family farms was met with widespread opposition as political parties ramped up pressure on the government over the sale of large tracts of farm land to foreign interests, particularly Chinese.

Synlait Farms supplies about a tenth of listed dairy processor Synlait Milk’s needs. The companies were founded together in 2000, sharing some common ownership until 2010, and Synlait Milk listed on the local stock exchange this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news