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

 

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Half Empty: Dairy Prices Drop To Lowest Since August 2009

Dairy product prices fell to the lowest level in more than five years in the latest GlobalDairyTrade auction, led by declines in butter milk powder and whole milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
More RSS  RSS
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news