China’s new beef tariffs expected to favour New Zealand exporters
Additional tariffs introduced by the Chinese Government last month on beef imports should favour New Zealand farmers and exporters.
Chief executive Dean Hamilton says they believed it was correct to wait until they had clarity on the transaction timing and specifically the extension to the Overseas Investment Office (OIO) condition date between Silver Fern Farms and Shanghai Maling.
"Having now agreed in principle and announced the revised OIO condition date of September 30, 2016, we can update the materials to be provided to shareholders so they will be fully informed. These materials will be despatched in the second half of July," Hamilton says.
"Whilst the need to extend the OIO condition date is disappointing, it is required to ensure we have sufficient time to respond to the information requests by the OIO. Of note, we believe the requisitioners lodged a submission to the OIO shortly before our previous public deadline for approval of 30 June – some seven months after the OIO process began."
The Board of Silver Fern Farms continues to strongly believe that the October 2015 meeting held to approve the investment by Shanghai Maling, the materials provided to shareholders, and the voting threshold set were fully compliant and legal in all respects, it says in a statement.
"Both the FMA and Companies Office have not found any fault with the board's actions," the statement says.
"An overwhelming 82.2% of votes from shareholders were in support of the partnership with Shanghai Maling.
"It remains in the best interests of shareholders and the cooperative, it is a significant opportunity for our farmer shareholders to create an improved future, and we intend to follow their direction and complete the transaction in accordance with the revised timetable."
