Business boost for Blue Sky Meats
Blue Sky Meats’ annual report reveals a lift in business performance and better financial position, but the Southland meat processor says it won’t be resting on its laurels.
The Oamaru firm withdrew after missing the deadline to get regulatory sign-off. Blue Sky chairman Scott O’Donnell has told shareholders Binxi pulled out after not getting Overseas Investment Office approval by March 20.
He also said the wet, cold weather triggered a material adverse change in the meat processor’s finances in that it reduced stock flows in the early part of the season and limited rendering when it wasn’t prudent to irrigate rendering effluent.
“We expect these issues will lead to significantly poorer than expected financial performance for FY17,” O’Donnell said. “We directors are disappointed by Binxi’s decision to withdraw the offer.”
Binxi Cattle Group built its stake in Blue Sky last year, becoming the third-largest shareholder behind Lowe Corp and HW Richardson Group. It operates a vertically integrated beef business in China, owns the Oamaru meat processor Lean Meats and had planned to acquire Blue Sky to grow its New Zealand Binxi business.
Its $2.20 per share offer crossed the 90% threshold needed to mop up the remaining shares earlier this year, but was contingent on getting OIO approval.
O’Donnell said Blue Sky was still open to discussing an alternative deal with Binxi.
