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

 


Goodman Fielder sells NZ meat and pizza units for up to $17M

Goodman Fielder sells NZ meat and pizza units for up to $17 mln

By Paul McBeth

Jan. 8 (BusinessDesk) - Goodman Fielder, the biggest food company in Australia and New Zealand, will net up to $17 million from the sale of its local meat and pizza businesses, as it continues to streamline its suite of brands, and will take one-time charges of up to $44 million.

The Sydney-based company will sell its meats business to Hellers, the Christchurch-based meat producer half-owned by Rangatira, and its pizza business to Papatoetoe-based Mommas Frozen Products, raising net proceeds of between $15 million and $17 million, it said in a statement. The cash will be used to repay debt.

As part of the sale of the meats unit, it will close its Frankton facility, which employs 125 people, and will pay out full redundancy if it can’t find them positions at other Goodman Fielder or Hellers sites. That will cost about $8 million in closure costs, and the company anticipates impairment charges of between $32 million and $36 million from the two sales.

“Over the past 18 months, we have successfully prioritised our product portfolio with a number of business divestments, including Integro, NZ Milling, Copperpot and most recently the Biscuits business,” chief executive Chris Delaney said. “On finalisation of the sales of Meats and Pizza businesses, we will have largely completed our divestment programme which will enable the company to focus our resources on our core categories.”

Goodman Fielder returned to profit last year after it completed a two-year restructure, selling assets and repaying debt.

The dual-listed shares fell 3.4 percent to 71.5 cents on the NZX, and were last at 66.5 Australian cents on the ASX. The stock is rated an average ‘hold’ based on 11 analyst recommendations compiled by Reuters, with a median target price of 75 Australian cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news