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

 

SFF shareholders vote to sell 50% to Shanghai Maling

Silver Fern Farms shareholders approve deal to sell 50% stake to Shanghai Maling

By Jonathan Underhill

Oct. 16 (BusinessDesk) - Shareholders of Silver Fern Farms have voted in favour of a proposal to sell 50 percent of New Zealand's biggest meat company to Shanghai Maling Aquarius after the unit of China's state-owned Bright Food Group offered $261 million of cash, a special dividend and money to bankroll the cooperative for seven years.

Some 82.2 percent of votes were cast in favour of the transaction, comfortably exceeding the 50 percent threshold the board had set.

The funds will allow SFF to repay all of its debt and removes a threat from its banking syndicate to withdraw support. As part of the deal, Shanghai Maling will appoint a co-chair of the venture, who will have a casting vote on issues including appointment of the chief executive. Opponents of the sale, which still requires Overseas Investment Office approval, failed to convince SFF's board to consider alternative funding proposals that would keep the cooperative in New Zealand hands, with 76 percent of votes cast against that resolution.

Shanghai Maling's supply chain and parent Bright Food's wholesale and retail networks, offer distribution into China, allowing SFF to ramp up its product development and consumer marketing in a way it couldn't do on its own or with any other investment partner, the company said when the deal was announced last month.

“The new partnership will allow us to invest in the things we want to, not just the things we need to, which has been the position in recent times," said chairman Rob Hewitt. The deal "will provide significant financial capability to accelerate our global ‘Plate to Pasture’ strategy. In addition, with the extensive retail and distribution assets of Shanghai Maling and the broader Bright Food Group in China, we will have a unique opportunity to establish Silver Fern Farms as the premium red meat brand in what is the world’s fastest growing protein market."

Shanghai Maling is one of four Shanghai Stock Exchange-listed subsidiaries of Bright Food, which has expanded rapidly since being founded in 2006 to become China's second-largest food manufacturer. It owns 51 percent of milk processor Synlait through another subsidiary Bright Dairy & Food, and other acquisitions in the past five years include 60 percent of UK cereal maker Weetabix, 75 percent of Australia's Manassen Foods and a majority stake in Italian olive oil maker Salov Group.

SFF says the investment will provide funds to upgrade plants and extend its Plate to Pasture strategy, which has seen the company lift the volume of its meat sold as value-added, chilled meat cuts in foreign supermarkets. SFF's shares were suspended from trading on the Unlisted platform in July, having traded at 35 cents, a fraction of the $2.84-per-share value of Shanghai Maling's proposal. The shares resumed trading on Sept. 16 and were last at $1.30.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

RNZ: Housing Boom Could Get Worse, Economist Warns

Economists are calling on the Reserve Bank to reinstate lending restrictions, warning the housing market is spiralling out of control. More>>

ALSO:

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Economy: NZ Small Business Recovery Continues In September

Xero, the global small business platform, today released its Small Business Insights (XSBI) for September revealing an uptick in small business jobs and year-on-year revenue growth in New Zealand. Nationwide, the average number of jobs in the small ... More>>

ALSO:


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO: