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

 

Rural Equities’ Cushing to meet Tandou after building stake

Rural Equities’ Cushing to meet Tandou bosses after building 17.7 percent stake

By Paul McBeth

Aug 9 (BusinessDesk) - Rural Equities will meet with the bosses of Tandou in the coming weeks after the local farming group controlled by the Cushing family built a 17.7 percent stake in the ASX-listed agribusiness.

Chairman David Cushing told BusinessDesk the company hasn’t considered whether to push for a seat on the Tandou board after Rural Equities bough 11 percent of Tandou for $7.9 million at an average price of about 43 Australian cents, building on the Cushing family’s stake.

“We plan to have discussions with the (Tandou) chairman and chief executive in the coming weeks,” Cushing said.

The investment aims to piggyback on Tandou’s water rights, which Rural Equities sees as underpinning future Australian agricultural production, and Cushing said the acquisition was at a “significant discount” to the company’s net tangible assets.

“We think it’s a positive acquisition for Rural Equities shareholders” but isn’t a “synergies play,” he said.

In a statement, Cushing said Rural Equities intends to be a long-term shareholder in Tandou.

Rural Equities owns 27 farms, of which nine are directly managed and the rest leased out. Its shares, which are listed on the Unlisted platform, last traded at $3.90, valuing the company at $139.8 million.

Cushing said the farming group has come through this year’s drought in reasonable shape due to its geographic spread across both islands.

Tandou focuses on focussed on large scale production of irrigated cereal crops and cotton, the pastoral production of sheep meat and providing agribusiness services to its customers, according to its website. The ASX-listed shares were unchanged at 50 cents today, valuing the company at A$71.6 million.

The Australian company was the subject of a takeover bid by Guinness Peat Group in 2009 and 2010, in an offer Tandou said was the investment trying to take control “on the cheap.” GPG sold its stake earlier this year for A$12.8 million, or 36 Australian cents apiece, as it liquidates its portfolio.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:

Grey Power: Is Disappointed To Learn Of More Bank Closures

Many older people are being left without essential services because of cost cutting and the march of modern technology. It is now expected that most banking transactions can occur via the internet or telephone. Jan Pentecost, President of the Grey Power ... More>>

ALSO:


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing

ALSO:

House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO: