Tuesday 06 December 2016 04:58 PM
Shanghai Maling completes purchase of controlling stake in Silver Fern Farms
By Edwin Mitson
Dec. 6 (BusinessDesk) - China's Shanghai Maling has completed its purchase of a controlling stake in Silver Fern Farms.
The Chinese company has paid $267 million in cash for a 50 percent stake in Silver Fern Farms, which includes certain
voting rights on the board. The deal had been due to complete by Jan. 4, 2017, but SFF said last month that it aimed to
tie up the sale by the end of the year.
The cooperative now holds $57 million in cash, alongside its 50 percent stake in the new business. The redemption of
approximately $5 million in remaining supplier investment shares and the payment of a $35 million special dividend are
due to be completed by the end of February next year.
"This partnership is a genuine game-changer for Silver Fern Farms," SFF chair Rob Hewett said. "It delivers a strong and
sustainable capital structure, the resources to accelerate our plate to pasture strategy in selected global markets and
the capital to invest in optimising our production facilities and capability. Importantly, it brings a collaborative and
connected partner in the fastest growing red meat market in the world, China."
Director appointments have been appointed by both shareholders. Rob Hewett, Dan Jex-Blake, Richard Young, Jane Taylor
and Trevor Burt have been appointed by the co-operative. Xia Xu Shen, Gu Xiang Yi, He Ru, Sam Robinson and Michael
Schubert have been appointed by Shanghai Maling.
Silver Fern Farms is New Zealand's largest meat company and political opposition to the sale was led by the New Zealand
First Party. The sale was approved by the government in September, on the recommendation of the Overseas Investment
Office. The deal enables Silver Fern to repay its debt, removing a threat from its banking syndicate to withdraw
support.
(BusinessDesk)
ends