Monday, 8 September 2008
Farmers Vote For Change
Farmer shareholders in Silver Fern Farms have voted overwhelmingly in favour of the partnership proposal with PGG
Wrightson (PGW), taking a major step in securing a sustainable future for New Zealand's red meat industry.
75.62 percent of the votes cast were in favour of the partnership. The vote attracted a very high turnout, with more
than 83.3 percent of the eligible votes being cast. Remarkably, 100 percent of the votes cast at the Special General
Meeting today voted in favour of the proposal.
Eoin Garden, Silver Fern Farms' chairman, said he was delighted with the result and the support of shareholders. "We
strongly believe partnering with PGW is in the best interests of Silver Fern Farms' suppliers and, going forward, the
wider pastoral sector. This is not just about Silver Fern Farms and its shareholders; it's about the future of the red
meat industry."
Under the partnership PGW will contribute $220m to recapitalise Silver Fern Farms, creating an entity with shareholders
funds of $510m and an equity ratio of 80 percent. "It's an unprecedented injection of new capital into our industry, and
farmers and shareholders in Silver Fern Farms will benefit significantly," said Mr Garden.
In a joint statement, Mr Garden and PGW chairman Craig Norgate said: "This is a great day for both companies and indeed
the red meat industry in New Zealand. "We are excited by the opportunity to create a truly vertically integrated supply
chain - from plate to pasture - that better serves the needs of international customers. We intend capitalising on the
opportunities presented by an increasingly affluent and sophisticated international market, for high quality red meat
products.
"Our relationship is based on a shared vision for the industry and an alignment of commercial drivers. That vision also
extends to a committed drive for further industry consolidation, and this vote in favour of the partnership is a clear
mandate from our shareholders to pursue this direction. We look forward to now being able to implement our strategies
and to make positive and value enhancing changes for all stakeholders."
The partnership transaction is to be implemented by 1 October 2008.
Ends