Silver Fern Farms and Shanghai Maling announced yesterday the deal between them has been completed, creating Silver Fern Farms Ltd and a strong future for the company. The new board has been announced.
Silver Fern Farms Co-operative chair Rob Hewett , says yesterday’s completion of the $267 million investment into Silver Fern Farms, will be welcome news to shareholders and suppliers.
“This partnership is a genuine game-changer for Silver Fern Farms. It delivers a strong and sustainable capital structure, the resources to accelerate our plate to pasture strategy in selected global markets and the capital to invest in optimising our production facilities and capability. Importantly, it brings a collaborative and connected partner in the fastest growing red meat market in the world, China.
“We have had overwhelming support from our shareholders throughout this process and we are excited by the opportunities this partnership with Shanghai Maling will provide.”
The partnership which took effect from 6 December, sees Shanghai Maling investing $267m in cash in return for a 50 percent stake in Silver Fern Farms’ business (now named Silver Fern Farms Limited). Of the $267m, $57m now resides with the cooperative, alongside the cooperative’s 50 percent holding in Silver Fern Farms Ltd.
In association with the transaction, the cooperative board intends to announce in coming weeks the process for the redemption of the approximately $5m of remaining supplier investment shares, and in January, the terms of the $35m special dividend for the holders of ordinary and rebate shares. Both are expected to be completed by the end of February 2017.
Silver Fern Farms Co-operative and Shanghai Maling have announced their director appointments for the board of Silver Fern Farms Ltd, including two New Zealand resident directors by Shanghai Maling:
Appointed by Silver Fern Farms Co-operative:
- Rob Hewett (Co-Chair)
- Dan Jex-Blake
- Richard Young
- Jane Taylor
- Trevor Burt
Appointed by Shanghai Maling:
- Xia Xu Shen (Co-Chair)
- Gu Xiang Yi
- He Ru
- Sam Robinson
- Michael Schubert
Hewett welcomed Mr Xu Shen Xia, the chairman of Shanghai Maling, as co-chair, who will take the director and co-chair role in place of Mr Wei Ping Shen.
“I am delighted with the calibre of the Board for the partnership. This is a strong board with a broad range of experiences across the red meat industry, farming, finance, investment, international business and board governance,” he says.