Grocorp's stakeholders check apple industry for worms

By Chris Hutching

Friday 26th May 2000

Further changes in the shareholding of Grocorp are likely as the new majority owners consider their options.

A couple of months ago a stake of about 80% was bought by Apples Aotearoa, associated with Grocorp director and Timaru businessman Ed Sullivan and Ross Lund.

Mr Sullivan confirmed that options were being evaluated. He remains confident for the industry and for Grocorp's immediate outlook.

A successful insurance claim for hail damage of about $2 million would strengthen the balance sheet.

Mr Sullivan said there would be some positive results from the independent marketing Grocorp was involved in with Tesco.

One of the vendors in the recent share deal was South Canterbury Finance, which subsequently has provided finance at 12%, stepping into the breach when ANZ proved unwilling to continue its relationship.

Mr Sullivan said the ANZ move was based on its opinion of the apple industry. It was owed $10 million.

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