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 managing director, Craig Thompson, says the move signals the company's intention to focus on expansion in the eastern Bay of Plenty and Poverty Bay.
Thompson says that Seeka Kiwifruit Industries has been a cornerstone shareholder of OPAC since 2005.
"Over the last few years it became apparent that Seeka and OPAC have divergent strategies. The two companies are not achieving operational or strategic benefits from the shareholding and, in fact, are actively competing to gain orchard management and post-harvest fruit supply contracts."
"The share buyback delivers us complete control over our future plans. The OPAC management team and board consider the outlook for the NZ Kiwifruit industry and company is bright. Our client base is growing because our operational performance consistently delivers grower returns in the upper quartile and we provide friendly and personal service."
OPAC board chairman, Tony de Farias, says the board is pleased to have shareholder support for the buyout. "We will continue to review capital requirements and look for suitable alliances with growers and our supply partners," he says.
OPAC growers of the new kiwifruit cultivar G3, which replaced the Psa prone Hort16a, expect increased volumes of fruit over the next two to three years. OPAC expects to pack around 4.3 million trays this year and 6 million trays by 2018. To keep up with increased fruit volumes, the Factory Road site at Opotiki will be expanded and updated.
