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SCF receiver gets other Dairy Holdings shareholders on board

SCF receiver gets other Dairy Holdings shareholders on board for sale

By Jason Krupp

Dec. 15 (BusinessDesk) - The receiver of South Canterbury Finance Ltd. has reached an agreement with four shareholders of Dairy Holdings Ltd. to put their 62.5% stake in the South Island farming group up for sale.

The shareholders include South Canterbury Finance which owns a 33.6% stake, three U.S. investors who control 25% in the company, and Humphrey Rolleston with a 3.9% holding, according to a statement from advisory group McGrathNicol.

Rolleston, who was a long-time collaborator with Timaru businessman Allan Hubbard until 2004, said the sale builds on the work already done over the past two months to sell his interests and those of the US investors, and the addition of SCF's majority stake is likely to be more attractive to a broader range of parties. The deal’s expected to be completed before Christmas.

SCF bought its stake in Dairy Holdings from Alan Hubbard's Southbury Group two years ago for $76 million, which operates 56-dairy units

South Canterbury receiver Kerryn Downey said it’s possible a bigger stake in Dairy Holdings could ultimately be sold depending on whether other shareholders were willing to sell their stakes.

"This is the opportunity for them to join the sale process we are undertaking at any stage," Downey said.

First NZ Capital have been appointed to act with investment bank Murray & Company as joint sale advisers for the deal.

(BusinessDesk)

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