Sharechat Logo

Tidy Cedenco gain for Brierley

By Phil Boeyen, ShareChat Business News Editor

Wednesday 9th May 2001

Text too small?
Brierley Investments (NZSE: BRY) has pocketed $3.9 million on its investment in food company Cedenco (NZSE: CED) although it says the gain won't affect end of year results.

Brierley says its wholly-owned subsidiaries, Eglett Investments and Manco, have sold their entire 48.54% shareholdings in Cedenco to California-based SK Foods for $11.05 million net of the recent dividend.

The company says the book value of the investment was $7.57 million leaving an excess of the sale proceeds over book value of $3.9 million.

"The transaction is not expected to have any material effect on the Group's net tangible assets or earnings per share for the financial year ending 30/06/2001," the company says in a statement.

Brierley announced last year that it wanted to quit its Cedenco holding, prompting the Gisborne-based food processor to call for offers to buy 100% of the company.

However after several months the best offer was from SK Foods, a Californian food company which has taken a stake just under 55%.

Cedenco this week announced a leap in interim profit to a record $2.4 million on trebled sales of $11.9 million.

Increased certainty about the company's shareholding combined with the improved result has seen its stock lift around 20 cents in the past week to $1.65. SK Foods paid $1.52 per share for the company cum dividend.

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  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:

Air NZ dashes Brierley hopes
Cedenco approves US purchase
Brierley bids farewell to Air NZ 'B' shares

IRG See IRG research reports