Silver Fern Farms and Shanghai Maling have agreed to an early completion of their partnership.
Initially planned for 4 January 2017, Silver Fern Farms chair Rob Hewett says with everything ready ahead of time it makes sense to complete the transaction earlier.
“There is little merit in simply waiting. Both Boards are keen to get on with the partnership and deliver on the benefits already identified. The final date for completion will be confirmed shortly.”
Shanghai Maling will invest approximately $267m in cash in return for a 50% stake in Silver Fern Farms’ business (to be named Silver Fern Farms Limited). This amount is above the $261m original estimate, which was (as disclosed as part of the shareholder information materials) subject to a net tangible asset adjustment at 30 September 2015, an adjustment for advisory costs and the cost of redeeming any rebate and supplier investment shares up until completion. Of the $267m, $57m will reside with the Co-operative, along with the Co-operative’s 50% shareholding in Silver Fern Farms Limited.