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

 


Blue Sky Meats strengthens Chinese ties as exporter buys 11%

Blue Sky Meats strengthens Chinese ties after exporter pays premium for 11% of company

By Suze Metherell

April 7 (BusinessDesk) – Blue Sky Meats has strengthened ties with China, its largest market by volume and value, after two Auckland-based businessmen paid a premium for 11 percent of the unprofitable meat processor.

Cook Huang and Qiang Zheng acquired the Blue Sky holding from Danish casings company DAT-Schaub Group for $2.33 million, or $1.80 a share in an off market share transfer, according to a Blue Sky statement to the Unlisted platform. Their investment vehicle, Blue Star Corp, is now the third-largest shareholder of Blue Sky. Its shares last traded at $1.10.

Huang exports New Zealand red meat, spring water, juice and chocolate to China through a separate company he set up in September, Everlast International, and with his business partner Zheng, he had been looking for a suitable investment.

Blue Sky had a good management team and produced quality meat and “we want to share” in its growth, he said. He expects it to make “good profits” in 2014. Huang also operates an immigration consultancy in Auckland called Everlast Consultancy.

DAT-Schaub inherited the 11 percent stake of Blue Sky when it acquired Waikiwi Casings in 2010 and had long been looking to sell the shares, according to its statements.

Blue Sky’s losses widened to $3.88 million last year as it was hit by falling meat prices, changing market demand, a high kiwi dollar and ongoing recession in Europe.

“Past investment in Chinese relationships” had been critical in delivering cash flow during the difficult periods, the company said in its 2013 annual report. Its newest shareholder is keen to participate, Blue Sky chairman Graham Cooney told BusinessDesk.

“Blue Star has relationships with Chinese investments mainly in the food industry as I understand it and so they wish to have some sort of relationship with us,” Cooney said. “They’ve been a purchaser of some meat, and that will continue and we’re happy to keep talking to them.”

“The fact they’re a shareholder doesn’t give them any more rights than any other Chinese based purchaser,” he said. “I’ve told them what it gives them is a preferred status to talk to us.”

Huang and Zheng have joined companies including Oravida, associated with the husband of Justice Minister Judith Collins, in the rush to supply New Zealand products to China, the world’s fastest growing major economy and the nation’s biggest export market.

Last year meat cooperative Alliance Group approached Blue Sky about a possible takeover but Blue Sky withdrew from talks after failure to agree on key terms. Both processing companies are based in Invercargill.

The farmer-led Meat Industry Excellence group has been pushing for closer integration of meat companies in an industry where processors outbid each other for dwindling numbers of livestock to push through plants with surplus capacity. The group has gained representation on the boards of Silver Fern Farms, the nation's largest meat cooperative by revenue, and Alliance, the second largest.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Christchurch: New Lyttelton Cruise Ship Berth To Be Built

A new $56 million cruise ship berth will be built in Lyttelton with the plans released by the Lyttelton Port Company today. More>>

Constructions Builds: Consents Top $2 Billion For The First Time

Building consents reached a record $2 billion in March 2017, boosted by new homes and several big non-residential projects, Stats NZ said today. This was up 37 percent compared with March 2016. More>>

Other Stats:

Health: Work Underway To Address Antimicrobial Resistance

As part of a global response the Ministries of Health and Primary Industries have today jointly published ‘Antimicrobial Resistance: New Zealand’s current situation and identified areas for action’ to respond to the changing pattern of antimicrobial resistance in New Zealand. More>>

ALSO:

Employment: Vodafone Announces Family Violence Policy To Support Team

From today, any of Vodafone’s 3,000 workers affected by family violence will be eligible for a range of practical support, including up to 10 additional days of paid leave per year. More>>

Burning Up Over Saturn: Cassini's Grand Finale

With propellant running low, NASA scientists are concerned that the probe might accidentally crash into one of Saturn’s nearby moons, which could contaminate it with Earthling bacteria stuck to the spacecraft. Instead, the spacecraft will be safely "disposed" in Saturn's atmosphere. More>>

ALSO:

Our Fresh Water: Monitoring Report Confirms Serious Challenges For Rivers

• nitrogen levels are getting worse at 55 percent and getting better at 28 percent of monitored river sites across New Zealand • phosphorus levels are getting better at 42 percent and getting worse at 25 percent of monitored river sites across New Zealand More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news