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Talley's declares Affco offer unconditional

Tuesday 21st September 2010

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Talley's Group declared its takeover offer for Affco Holding unconditional and said it had acceptances amounting to almost 85% of the meat and dairy investment group. 

The offer of 37 cents a share was due to close yesterday. Talley's, whose businesses range from frozen vegetable to seafood and ice cream, already controlled the company, with about 53% of the stock and had agreement to buy the 23.5% held by the Spencer family's Toocooya Nominees.

The offer price was within the 34 cents to 44.4 cents independent valuation of the company. Talley's didn't offer a premium to mop up the remaining shares. Affco traded at the offer price in the days leading up to the offer. The shares peaked at 61 cents in August 2008.

The agreement to buy Toocooya's stake triggered the full takeover offer. Affco, New Zealand's fourth-largest meat processor and exporter, was established in 1904 and currently operates nine plants in the North Island and two plants in the South Island.

Shares of Affco were unchanged today at 36 cents. The company owns 35% of Open Country Dairy, an independent dairy processor that buys regulated raw milk from Fonterra.

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