Sharechat Logo

T&G Global to sell Kerikeri assets to Seeka in deal worth about $40m

Friday 20th April 2018

Text too small?

T&G Global will sell its Kerikeri-based kiwifruit orchards, packhouse facilities and assets to Seeka, New Zealand's biggest kiwifruit grower, in a deal worth around $40 million, the two said in a joint press release.


Seeka will purchase T&G’s post-harvest facilities in Kerikeri for the packing and storing of avocados, kiwifruit and citrus. Additionally, T&G has agreed to sell all its 253,000 Zespri shares to Seeka, valued at about $2 million. 


Seeka recently sold out of its 740,606 shares in Zespri Group after opposing constitutional changes at the monopoly export body that tie shareholdings to trays of fruit produced.


T&G is also selling approximately 80 hectares of kiwifruit orchards in and around Kerikeri to Seeka on which it currently grows the Hayward, ENZAGold and ENZARed kiwifruit as well as Zespri Sungold varieties. T&G will, however, remain the trademark owner of the kiwifruit brands. 


T&G will also have access to fruit grown by Seeka for its existing customers in New Zealand and overseas.


Seeka said the deal is subject to Overseas Investment Office approval, if required. 


The completion date for the post-harvest sale is expected to be April 30, and June 30 for the orchard sale. Seeka will then rename T&G’s Kerikeri facilities and operating business entities "Seeka Kerikeri."


Seeka chief executive Michael Franks said the company has identified the region as a growth area for both avocados and kiwifruit and establishing a post-harvest hub in Northland has been a priority. 


"With new avocado developments in the area, we are expecting demand for post-harvest facilities to increase. We also anticipate increasing demand for kiwifruit as growing conditions have proven very favourable, particularly for gold varieties and with Seeka providing a new competitive dynamic to the market focusing on quality, price and service," he said. 


T&G’s executive general manager, New Zealand, Andrew Keane, said the sale of T&G's kiwifruit operation is part of its intention to focus on core produce categories which will continue to include citrus and berries growth in Northland and other parts of the country.


“Our Northland berry and citrus operations are not included in our sale as we intend investing further in these growth categories. We have land ready for development and will be investing also in crop protection facilities for our existing operation in Kerikeri. We also hope to employ more people through these investments" he said. 


T&G shares, of which BayWa owns 74 percent, last traded at $3.12 and have dropped 18 percent over the past year. Seeka shares last traded at $6.63 and are up 29 percent over the past 12 months. 



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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: NZ shares at record as Skycity, Fisher & Paykel Health rally
NZ dollar edges lower as ANZ Bank sees heightened chance for rate cut
Bathurst ordered to pay L&M US$40M, plans appeal
Taranaki block offer timetable slips
Animates joint owner Greencross continues push into NZ
Countdown sees faster price deflation in 4th qtr; online shopping boosts FY sales
Nib NZ's earnings +3.8% as it focuses on innovation but NZ, Aus outlook muted
NZ pipfruit industry heading for a record 2018 crop, MyFarm says
Z Energy to raise up to $125M in bond offer to refinance recent maturity
Lack of FMA oversight lets investigations drag on, NZSA chair Hawkins says

IRG See IRG research reports