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SFF chairman Rob Hewett says it makes sense to complete the transition earlier than the planned date of January 4 next year.
In an ironic twist to the long-running Silver Fern Farms and Shanghai Maling merger saga, the deal will now be done earlier than planned.
Late last month, Silver Fern Farms announced the partnership will be completed before the middle of this month.
SFF chairman Rob Hewett says with everything ready ahead of time, it makes sense to complete the transaction earlier than the original planned date of January 4.
‘’There is little merit in simply waiting. Both boards are keen to get on with the partnership and deliver on the benefits already identified,’’ Hewett said in a statement.
In September, Silver Fern Farms finally received the regulatory approval from the Overseas Investment Office it needed for the joint venture to go ahead – after farmer/shareholders initially gave their approval in October last year.
However, a minority group of dissident shareholders, led by ex-pat Englishman and Canterbury runholder John Shrimpton, attempted to stop the joint venture. But a second farmer/shareholder second vote, in August, reaffirmed more than 80% farmer support for the deal.
Hewett says the final date for completion will be confirmed soon.
Shanghai Maling will pay about $267 million in cash for a 50% stake in Silver Fern Farms’ business, to be re-named Silver Fern Farms Ltd. This is above the $261m original price, which – according to the SFF statement – was subject to a net tangible asset adjustment at September 30, 2015, an adjustment for advisory costs and the cost of redeeming any rebate and supplier investment shares up until completion.
Of the $267m, $57m will reside with the co-op, with the co-op’s 50% shareholding in Silver Fern Farms Ltd, the statement said.
SFF says the investment will be the largest single amount ever invested in New Zealand’s red meat industry, described as a ‘’game-changing’’ opportunity.
Shanghai Maling, a subsidiary of state-owned food giant Bright Food Group, was the first food-processing company to list on the main board of the Shanghai stock exchange in 1997. Red meat (pork, beef and lamb) was its major focus, making up between 80-90% of its business.
Its strategy was to develop value-added products and build brand recognition in China.
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