An aspiring dairy player wants to raise up to $74.75 million to build a Waimate processing plant, less than a month after Synlait pulled the plug on a similar capital raising effort reports Business Day. Oceania Dairy is issuing 23 million new shares at $3.25 each to financial investors and farmers, with a minimum buy-in of 160,000 shares or $520,000. The main facilitator of Oceania Dairy has been merchant bank Ocean Partners and Oceania Dairy directors include Don Brash and Keith Turner, former chief executive of Meridian Energy. Oceania Dairy is not shying away from its bigger competitors, planning to build its plant near Glenavy, just 12 kilometres down the road from the Russian-owned New Zealand Dairies' plant. Oceania Dairy acting chief executive Paul Parker said this meant the two companies, and Fonterra, would be "very much in the same neighbourhood". "There will be competition in the region for milk," he said. "There is a level of disaffection [among farmers] with Fonterra and where it's heading." Waimate district farmers will be offered 13 million shares exclusively, with priority to those who sign up to long-term supply contracts.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.