Sharechat Logo

Seeka Limited (NZX: SEK) Announces Kiwifruit Acquisition

Thursday 25th March 2021

Text too small?

Seeka Limited advises that it has entered into an amalgamation agreement which offers the shareholders of the leading regional integrated kiwifruit business Opotiki Packing and Cool Storage Limited (“OPAC”) new shares in Seeka Limited.

The OPAC shareholders will receive new shares in Seeka at the ratio of 1.4833 Seeka shares for every 1 OPAC share held, valuing the net assets of OPAC at $33.94m assuming all OPAC shareholders accept the offer. Seeka will assume approximately $25.06m of debt as part of the acquisition, bringing the total transaction value to $59.00m.

The combined Company will have the capability to grow and handle fruit in all of New Zealand’s major kiwifruit growing regions.

The offer is subject to a number of conditions, including approval of OPAC’s shareholders to the amalgamation at a shareholders’ meeting to be held on Tuesday 13 April 2021; and approval by Seeka’s shareholders to the issue of up to 7,042,574 new shares in Seeka at the ASM to be held on Friday 16 April 2021. Further details are set out in the attached Amalgamation Proposal and will be advised in the Notice of Meeting to be sent to all shareholders prior to the ASM.

OPAC’s Chairman, Tony de Farias, in announcing the deal said: “The amalgamation brings together two companies with a long relationship and similar ownership structures. Many OPAC shareholders and growers are also shareholders in Seeka. The Board of OPAC recommends the deal to shareholders believing the enterprise value of $59m to be fair, with good opportunities for growth and synergies. The combined group will deliver efficiencies, new technology and grower support”.

Seeka Chairman, Fred Hutchings said: “The purchase of OPAC is consistent with our strategy and delivers the Eastern Bay of Plenty kiwifruit growing region to Seeka’s operations, a region in which Seeka is already experiencing growth through new orchard developments. The transaction is expected to be accretive to shareholders once the combined business is fully integrated. Seeka expects the bigger business to generate material efficiencies, synergy benefits and cost savings for the benefit of all stakeholders.”

The Boards of Seeka and OPAC have unanimously recommended the amalgamation.

Please see the links below for details:

Announcement - Acquisition - 25 March 2021

Cleansing Notice - 25 March 2021

Amalgamation Proposal - 25 March 2021

Source: Seeka Limited



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Pacific Edge Limited (NZX: PEB) Placement Upsized Following Strong Demand
24th September 2021 Morning Report
23rd September 2021 Morning Report
Pacific Edge Limited (NZX: PEB) Dual Lists on ASX; Announces Capital Raise to Accelerate
Tower Limited (NZX: TWR) Updates Guidance
South Port New Zealand Limited (NZX: SPN) 2021 Annual Report
22nd September 2021 Morning Report
Kathmandu Holdings Limited (NZX: KMD) FY21 Annual Results Announcement
Stride Property Ltd & Stride Investment Management Ltd (NZX: SPG) Update on Demerger and Office Fund
21st September 2021 Morning Report