Westpac NZ Becomes First Bank to Accept Zespri Shares as Lending Security
Westpac NZ has become the first New Zealand bank to receive approval from the Reserve Bank of New Zealand (RBNZ) to secure and leverage kiwifruit growers' Zespri shares.
OPAC is expecting significant growth in kiwifruit processing volumes in the next three years.
OPAC announced the execution of agreements which will enable it to complete an over-subscribed equity capital raise totalling $4.85 million.
There was strong participation from existing shareholders and suppliers, as well as the two new strategic shareholders to the business, Quayside Holdings Limited and Te Tumu Paeroa.
The transactions, which are subject only to shareholder approval at a special meeting on December 18, will see each of Quayside Holdings and Te Tumu Paeroa take 10.1% equity stakes in OPAC, with each party nominating a director for appointment to the OPAC board.
Quayside Holdings is the investment vehicle of the Bay of Plenty Regional Council, whose major investment asset is a majority stake in Port of Tauranga. Te Tumu Paeroa, the office of The Māori trustee, manages significant Māori land holdings throughout New Zealand and in the OPAC home territory of the Eastern Bay of Plenty.
OPAC is expecting significant growth in kiwifruit processing volume in the next four years from its existing supply base, particularly in the high value Zespri SunGoldTM (G3) Kiwifruit variety.
During 2015, OPAC began a capital investment programme which
will span several years, installing a new packing line and building new cool storage facilities at its Opotiki site.
The equity capital raise supports this investment programme.
OPAC chief executive Ian Coventry says: "The OPAC Board is delighted to be able to take the agreements with Quayside and Te Tumu Paeroa to the shareholders for approval. Their interest in investment in OPAC is a significant vote of confidence in OPAC and the kiwifruit industry.
"The investment also signals confidence in the prospects of both Opotiki and the Eastern Bay of Plenty as an area for horticulture, business development and employment growth. This is also important to OPAC's continuing
success."
Subject to the shareholder approvals, the capital raise will be completed in December 2015, providing a strong capital base for OPAC to plan ahead to both the 2016 kiwifruit harvest, and future investment for growth.
