Talley's takes more of Affco

By Phil Boeyen, ShareChat Business News Editor

Thursday 8th November 2001

Private food processing company, Talley's, says it likes the direction being taken by meat company Affco (NZSE: AFF) and has increased its shareholding accordingly.

Talley's revealed on Wednesday that it had purchased a further 5% in the company and now holds a 16.73% stake. Just last month the company increased its holding to 11.3% following a 10% share placement.

The latest purchase was made off market at 29 cents per share for a total of $3.5 million.

Talley's director, Andrew Talley, says the company is impressed with Affco's current direction and is looking to be a long-term investor.

"We see a lot of similarities between ourselves and Affco."

Motueka-based Talley's main products are frozen fish, vegetables and ice-cream and the investment in Affco gives it an entry into the meat sector as well.

However Mr Talley won't say if the company will look to further increase its stake. "We're quite happy with our current shareholding," he says.

Affco has announced a fully underwritten, one for five pro rata rights issue at 25 cents per share to raise $11.25 million for corporate expenses, working capital and funding capital expenditure.

The record date for the rights is Friday, November 16.

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