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
- 20 September 2016 – The Overseas Investment Office clears way for partnership
- 12 August 2016 – Silver Fern Farms shareholders again give strong support for Shanghai Maling proposal
- 28 June 2016 – Companies Office confirms SFF directors did not breach directors’ duties
- 25 May 2016 – FMA announcement that shareholder information was not misleading or deceptive
- 4 November 2015 – Shanghai Maling shareholders endorse 50/50 partnership with Silver Fern Farms
- 16 October 2015 – 82.22% of SFF shareholders vote in favour of the partnership
- 15 September 2015 – Shanghai Maling investment in Silver Fern Farms announced