Sharechat Logo

Shanghai Maling bid to buy Silver Fern Farms stake under consideration by Upston, Bennett

Tuesday 13th September 2016

Text too small?

New Zealand's Overseas Investment Office has sent its recommendation on a proposal for China's Shanghai Maling Aquarius to acquire a half stake in Silver Fern Farms, New Zealand's largest meat processor, to the relevant government ministers for a decision.

Land Information Minister Louise Upston and Associate Finance Minister Paula Bennett received the documentation from the Overseas Investment Office last week, and are now considering the application, spokesman Harley Thorpe said. The Ministers are aware of the Sept. 30 deadline Shanghai Maling and Silver Fern Farms had set for the deal and have that in mind, he said.

Overseas Investment Office approval for the $261 million deal was first sought in October last year, and had been slated to go unconditional by June 30, but delays in the approval process saw the companies agree to a revised date of Sept. 30. The deal would enable Silver Fern to repay its debt, removing a threat from its banking syndicate to withdraw support. It would also enable it to tap Shanghai Maling's supply chain and parent Bright Food's wholesale and retail networks to distribute into China.

Silver Fern Farm shareholders reaffirmed their support for the sale at a meeting last month, which was called by a group of farmer-shareholders opposed to the deal.

Should it be approved by the Ministers, the deal is expected to be settled on Jan. 4 next year.

(BusinessDesk)

 

BusinessDesk.co.nz



  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:

MARKET CLOSE: Blue-chip stocks Meridian, A2 lead market lower
NZ dollar rises on Brexit hopes, rate cut reassessment
Three not failing, just needs a new owner - MediaWorks CEO
Major investors back new CBL class action targeting directors
Rip Curl purchase a done deal on Kathmandu proxies alone
Comvita chair Neil Craig eyes the exit once he finds a new CEO
Mercury raises guidance on increased storage, high spot prices
Eroad reports strong 3Q sales growth, eyes ASX listing
MediaWorks puts TV business on the block
NZ dollar benefits as preliminary Brexit deal improves risk appetite

IRG See IRG research reports