Thu, 2 Dec 2004
Seeka Eleos Amalgamation to Proceed
The Board of Seeka Kiwifruit Industries Limited announces Eleos shareholder approval for the amalgamation of Eleos
Limited with a wholly owned Seeka subsidiary.
The proposal was endorsed unanimously by Eleos shareholders attending a special meeting held 1 December. Under the terms
of the offer the shareholders have five working days to elect to receive cash or a combination of cash and Seeka shares
in consideration of the amalgamation proceeding.
Eleos directors declared a dividend of 8 cents per Eleos share and declared a supplementary dividend of 34 cents per
Eleos share that will be funded from Seeka ‑ both dividends fully imputed. The dividends will be paid to Eleos
shareholders on 20 December 2004, timed to coincide with the Seeka consideration payments and trading of Seeka shares
issued under the amalgamation.
The dividends and consideration brings total value to $3.10 per Eleos share.
Eleos chief executive Les Anstis says the Eleos Board and company selected Seeka as the preferred bidder and had
recommended the transaction to shareholders.
“The Eleos Board is delighted with the transaction and believes that the amalgamation will create the opportunity for
significant growth prospects for growers and shareholder,” says Anstis.
The amalgamation was completed despite a late competitive bid that had been announced 26 November.
Seeka managing director Tony de Farias says the Eleos amalgamation was an important step in Seeka’s growth strategy.
”The Combined group will have over 17% of the industry’s crop. This growth in volume allows significant economies of
scale and rationalisation to occur.
I compliment the Eleos Board on the process that they had undertaken. It was clear, concise and has delivered value to
their shareholders,” says de Farias.
Seeka and OPAC in investment talks
Seeka Kiwifruit Industries and Opotiki Packing and Coolstorage Limited (OPAC) advise that the two Companies have agreed
to enter into an agreement which will see Seeka taking a 20% cornerstone shareholding in OPAC.
OPAC and Seeka have had a long standing relationship with OPAC being the second largest shareholder in Seeka. In the
arrangements under discussion, OPAC would distribute its Seeka shareholding to OPAC shareholders.
The combined group is expected to offer significant benefits to shareholders and growers of both companies. The
announcement follows Seeka’s successful move to amalgamate with Eleos Limited, and if Seeka’s cornerstone shareholding
in OPAC proceeds, the combined group will handle over 25% of New Zealand’s kiwifruit volume.
OPAC chief executive Craig Thompson says the time is right for OPAC to join a bigger group.
”There are significant efficiency gains available to OPAC shareholders and growers through the Seeka investment. These
include the ability to leverage better commercial terms in all dealings, supply alliances, rationalization of supply
chain costs, and access to post harvest and corporate support functions,” says Thompson.
Seeka managing director Tony de Farias says the potential investment made a lot of commercial sense.
“OPAC has good assets, good management and operates in a geographical area away from Seeka’s traditional operational
base. Seeka’s considerable resources and support will enable OPAC to reinforce its position as the pre-eminent kiwifruit
post harvest business in the Eastern BOP and Gisborne regions.
“OPAC is a successful and dynamic business and will naturally exploit the advantages that this commercial alliance will
“OPAC’s offshore investments, particularly its Italian gold kiwifruit orchards, are significant assets that will
generate new future cashflows. OPAC’s strong commercial relationships with the Salvi Company in Italy, and Venida in
California, which have developed around their offshore Gold plantings, will be strategically important in developing and
implementing future in-market packing alliances,” says de Farias.
A new Supply Entity will be formed to consolidate the commercial supply arrangements for the combined group
incorporating Eleos, OPAC and Seeka. Integrated Fruit Supply and Logistics Limited (IFSL) will initially supply over 25%
of the New Zealand kiwifruit crop and will immediately seek to enter into an enduring partnership arrangement with
marketer Zespri Group Limited. The main aim of the new arrangement will be to assist Zespri to achieve supply chain cost
savings for growers through improved integration between the orchard, manufacturing and marketing functions. Supply
volumes under this arrangement are expected to grow further by harvest 2005.