Silver Fern Farms deal: huge potential, caution required

15 September 2015 Follow us

Silver Fern Farms deal offers huge potential but caution is required

Federated Farmers sees Shanghai Maling ‘s proposed investment in a joint venture with Silver Fern Farms as an overwhelming vote of confidence in our red meat industry, however we are encouraging Silver Fern Farms' shareholders to carefully consider the offer.

President Dr William Rolleston says that, while the offer strengthens the business and offers potential for further growth in the Chinese market, there are some key issues for shareholders to work through ahead of the special general meeting on October 16.

“Silver Fern Farms buys and processes a considerable proportion of New Zealand’s beef and lamb, so we need it to be sustainable and successful. The proposed joint venture has the potential to create significant opportunity, but shareholders need to consider the offer in detail,” he said.

“There are a lot of factors that will ultimately determine whether this is the right deal for shareholders, and not all of them are clear from what has been announced today. Key questions include what value has been placed on Silver Fern Farms' significant body of intellectual property and whether a strong emphasis on the Chinese market will prove restrictive if that market weakens.”

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