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

 


Waitotara Directors Recommend Merger With Richmond

Directors of Wanganui-based Waitotara Meat Company are recommending a merger with major North Island meat industry player Richmond Limited.

The merger is being recommended as beneficial to shareholders and suppliers of both companies. It involves an exchange for 1.5 Waitotara shares for each share in Richmond, and the payment of a fully imputed dividend of 20 cents per share prior to their merger.

Waitotara was formed in 1987, with a new plant at Waitotara producing an enviable financial performance, particularly from 1991 to 1996, when shareholders and suppliers enjoyed returns well above the New Zealand sheep industry average.

Waitotara chairman and founder, Rod Pearce, said his company had performed well this season following a disappointing previous two years because of falling stock numbers combined with pricing difficulties in overseas markets.

"Productivity and quality from our two plants has been excellent, our central office in Wanganui has developed into a first class business unit and the establishment of our brand in the market has been a great success story," he said.

"But we still have not been able to maximise profits over the last three seasons due to industry pressure for livestock and seasonal finance. This means we have had barriers to making gains on several fronts, including product development, downstream processing and direct market sales.

The opportunity to merge with Richmond will solve these problems while unlocking the potential to move to a higher general level of performance for both companies.

"We welcome this merger as a very significant means to increase the value of shares in Waitotara, while at the same time enhancing the strategic position and value of both companies."

The move will give Richmond, already the dominant East Coast and lower North Island lamb processor, a strong presence in the central and western regions as well as in the Waikato. Mr Pearce said merging of the two companies' production, particularly fresh and further processed foods, would be of considerable advantage in the world marketplace.

ENDS....

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news