By Phil Boeyen, ShareChat Business News Editor
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Monday 4th February 2002 |
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Cedenco says it has given consent for SK Foods to acquire the 50% interest in the Cedenco Australia joint venture currently held by a subsidiary of Cerebos (Australia) Limited.
The JV with Cerebos was formed in 1996 to establish Australia's largest processing operation producing tomato, apple and other fruit and vegetable ingredients for supply to Cerebos and other branded food manufacturers.
"The decision to support the transaction between SK Foods and Cerebos was taken by the Cedenco directors who are independent of the SK Foods," the company says.
"Ownership of Cedenco Australia would bring substantial benefits to Cedenco, enabling integration of its direction with Cedenco's overall business strategy and opening excellent opportunities in Australia."
The Gisborne-based company says although the Australian JV is improving its performance, it believes the full potential of the business could best be realized under a restructured ownership.
"As part of the arrangements, the Cedenco Australia joint venture will enter into a long-term supply agreement with Cerebos to supply Cerebos and its related companies with its tomato and apple paste and diced tomato requirements in Australia and New Zealand."
Completion of the purchase is anticipated by March 1, and is subject to shareholder approval. A JV management committee will run the business with Cedenco in charge of management supervision. SKFoods will provide technical and marketing assistance.
SK Foods bought 54% of the shares in Cedenco from Brierley Investments (NZSE: BRY) and Mangatu Investments in May last year.
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