By Phil Boeyen, ShareChat Business News Editor
Tuesday 29th August 2000
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The US buyer is Penford Corporation, which will pay around A$100 million for the company.
Goodman Fielder chief executive, David Hearn, says his company is selling the business because it believes an international starch player can develop Starch Australasia - and Hi-maizeT - more effectively. Hi-maizeT is a corn-based food starch product that adds natural fibre to white bread, such as all McDonalds burger buns in Australia, without changing their taste or texture.
"As a leading speciality starch company based in North America, Penford Corporation will be able to leverage new regional and global opportunities for Starch Australasia."
"As a result, Goodman Fielder shareholders have received a good return on Starch Australasia and we will get the added benefit of royalty payments from future global sales of Hi-maizeT. Goodman Fielder will retain exclusive rights to Hi-maizeT in bread products throughout Australasia."
Mr Hearn says the price for the company is substantially above book value.
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