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China Resources acquires 15.4% of Scales from Direct Capital for $55.9 mln

Tuesday 15th March 2016

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China Resources Ng Fung has acquired 15.3 percent of Scales Corp, New Zealand's biggest apple exporter, for about $55.9 million from Direct Capital Investments.

The Hong Kong-based company today entered into an arrangement to buy the shares at $2.60 apiece, with settlement on about March 21. Scales said it welcomed China Resources "as a significant minority shareholder, and as a party who can provide support to Scales in its ongoing initiatives in China."

Scales shares rose 7.6 percent to $2.69 and have soared 80 percent in the past 12 months. Last month the Christchurch-based company reported that 2015 profit more than doubled to $38.9 million on increased sales of higher-value apples to markets in the Middle East and Asia.

China Resources Ng Fung is part of a global integrated food group that spans rice production, food research and development, production, processing, wholesale, retail, transportation, and international trade, according to its website.

BusinessDesk.co.nz

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