Silver Fern Farms Extends Exchange Offer Deadline

Silver Fern Farms Extends Exchange Offer Deadline

Shareholders in Silver Fern Farms are being urged to take up a ‘window of opportunity’ as the company extends the closing date for its Exchange Offer and Cash Issue to shareholders by three weeks to Friday 9 October 2009.

This will ensure farmer shareholders are afforded the maximum opportunity to invest in their business, retain farmer ownership and control and share equitably in the company’s future.

Eoin Garden, Chairman of Silver Fern Farms says 37% of shares have been exchanged to date, and a significant number of shareholders had taken up their full rights issue and oversubscription.

A total of 13,000 transacting shareholders were eligible for the offer, accounting for 57.5 million Rebate and Supplier Investment Shares. To date a total of 12 million new shares have been subscribed for and 22 million old shares exchanged.

“Whilst this is at the low end of what we envisaged there is no success or failure level as there is no immediate cash requirement, as evidenced by the offer of deferred payment terms for shares subscribed,” says Mr Garden.

Based on the current level of acceptance, those who have exchanged, subscribed for the new ordinary shares, and who are entitled to the 1 for 4 bonus share issue, have gained shares theoretically valued at $4.50 per share based on the original valuation model.

”We appreciate that the busy lambing season has meant many farmers haven't got to the paper work, so an extension is needed to provide farmers every opportunity to consider the offer and share in the value on offer.

“At the current level of acceptance it is only those who have exchanged who will gain from the enhanced value of ordinary shares, constitutional and capital reform,” says Mr Garden.

Under the Exchange Offer transacting shareholders have the opportunity to:
• exchange their Rebate Share and Supplier Investment Share holdings for new Ordinary Shares at a ratio of 1:1
• participate in a Cash Issue of two new Ordinary Shares per ordinary share held, at a subscription price of $1.00 per share
• pay the issue price, on application, or over a period of up to three years by deduction from livestock supplied
• elect to acquire more Ordinary Shares than entitlement at an issue price of $1.00 per share - subject to the ‘share cap’ of 5%
• receive one bonus ordinary share for every four shares held.

“Silver Fern Farms’ farmer shareholders now have a window of opportunity to invest in their processing and marketing assets, and continue the process of adding value to existing and future livestock production, enabling a profitable, enduring industry into the future.

“In effect, those who do not accept the exchange offer are transferring value to those of our transacting shareholders who do exchange,” says Mr Garden.

As a result of the extension of the closing date the shares will not be tradable on the Unlisted Exchange until after final closing date.

A copy of the investment statement relating to the Exchange Offer and Cash Issue is available on request by calling the General Counsel on 0800 362 362.

ENDS

© Scoop Media