Sale agreement for SCFs stake in Scales Corp

Wednesday 4th May 2011

Receivers have lined up a sale of South Canterbury Finance's 79.7% shareholding in primary sector group Scales Corp for about $44 million.

The conditional buyer is investment firm Direct Capital.

Receivers Kerryn Downey and William Black of McGrathNicol said Direct Capital had been selected through a competitive sale process, with the agreement subject to several conditions.

South Canterbury Finance collapsed last August, triggering payments by the Crown of about $1.6 billion to depositors under the Crown's retail deposit guarantee scheme.

The receivers said Direct Capital would complete the investment in Scales through its current fund Direct Capital IV, and with co-investments from the NZ Superannuation Fund and ACC.

Scales was a horticulture and primary sector processing, exporter and logistics business. Its operating businesses included apple grower, packer and exporter Mr Apple, a cold store network, bulk liquids storage business, logistics business, and Meateor Foods which exports processed meat used in leading pet food brands.

NZPA

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