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

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news