Silver Fern Farms welcomes the New Zealand Overseas Investment Office’s approval of the application by Shanghai Maling to invest $261m into the company to create a 50/50 partnership.
The proposed investment is now unconditional and is set to complete on 4 January 2017, the first business day of the new financial year for the partnership.
Silver Fern Farms Chairman, Rob Hewett said the new partnership with Shanghai Maling creates a unique opportunity for Silver Fern Farms.
“Shanghai Maling’s financial investment will make Silver Fern Farms the financially strongest company in the New Zealand meat industry with the ability to confidently invest in our business.
“The partnership will help us accelerate our consumer focused plate to pasture strategy globally, and to grow sustainable value for our shareholders and farmer suppliers over time.
“It is very pleasing to now be at this point after nearly 12 months, and we look forward to the partnership getting underway in the new year.”
Shanghai Maling President Wei Ping Shen was pleased the partnership could now be completed. “We are very pleased with the regulatory approval for this partnership. It clears the way for us to move ahead with the partnership. New Zealand grass fed red meat is the best in the world and the Silver Fern Farms' brand has the potential to become a leading red meat brand globally.”
Mr Hewett stated that after the investment completes the Co-operative will, as previously advised, pay a special dividend of 30c per share to all ordinary and rebate shares expected to be paid prior to 31 March 2017) and will commence the redemption of the remaining approximately $5m of Supplier Investment Shares outstanding.