Zespri launches industry realignment process

Zespri launches industry realignment process

World leading horticultural company, Zespri Group Limited lodged several key documents to support its strategically important industry realignment initiative today, with MinterEllisonRuddWatts advising on the targeted share issue and buy-back.

Zespri’s Product Disclosure Statement, Disclose Register Entry and the Buy-Back Disclosure Document were today submitted to the Registrar of Financial Service Providers for review by the New Zealand Financial Markets Authority, as well as lodged on the USX Share trading platform.

The targeted share issue and buy-back process is a key step in achieving the kiwifruit industry’s aim of strengthening grower ownership and control of Zespri says Corporate Partner Silvana Schenone who leads the firm’s advising team.

"Today Zespri begins implementing its strategic goal to realign its shareholders and kiwifruit growers," says Silvana Schenone.

"Zespri is a world renowned New Zealand brand, and getting the balance right between shareholders and growers is essential for the continued success of the industry. Currently a large proportion of growers are under shared or do not hold shares in the company. The process launched today aims to address this imbalance, allowing current growers access to dividends as well as fruit payments.

"The share offer could raise up to NZ$945 million if full entitlements are taken up, which will support the buy-back offer.

"We are delighted to have helped Zespri reach this key milestone in this large and strategically important project."

Zespri Chair Peter McBride comments:

"We are pleased to be able to offer eligible people the opportunity to purchase or sell shares in Zespri, following extensive industry consultation and changes to the Zespri Constitution. The targeted share offer and buy-back is one of the key measures of our goal to strengthen grower ownership and control of Zespri and is important for the long-term sustainability of our industry."

The share offer will open on 3 September and the buy-back opens on 17 September. Both offers close on 19 October 2018.

ENDS

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