Silver Fern Farms and Shanghai Maling to complete by mid-December

Rob Hewett, Silver Fern Farms
Rob Hewett, Silver Fern Farms chairman.

Silver Fern Farms and Shanghai Maling have agreed to an early completion of their partnership.

Initially planned for 4 January 2017, Silver Fern Farms chair Rob Hewett says with everything ready ahead of time it makes sense to complete the transaction earlier.

“There is little merit in simply waiting. Both Boards are keen to get on with the partnership and deliver on the benefits already identified,” he says. “The final date for completion will be confirmed shortly.”

The final completion date will probably be before mid-December, around 15 months after the arrangement with the Chinese meat processor and distributor was first announced and after strong support for the deal was subsequently gained from shareholders in two separate votes.

Shanghai Maling will invest approximately $267 million in cash in return for a 50 percent stake in Silver Fern Farms’ business (to be named Silver Fern Farms Limited). This amount is above the $261 million original estimate, which was (as disclosed as part of the shareholder information materials) subject to a net tangible asset adjustment at 30 September 2015, an adjustment for advisory costs and the cost of redeeming any rebate and supplier investment shares up until completion. Of the $267 million, $57 million will reside with the cooperative, along with the cooperative’s 50 percent shareholding in Silver Fern Farms Limited.

Silver Fern Farms is New Zealand’s leading processor and marketer of beef, lamb, mutton, venison and associated products to more than 60 countries. The company operates 16 processing facilities throughout New Zealand, employing more than 7,000 staff.  Its products are sold to key markets in North America, China, the United Kingdom and Europe, Asia, the Middle East and New Zealand, which are supported through a network of international offices.

Silver Fern Farms and Shanghai Maling timeline

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