Deals off, so hunt on for other options
4th Nov 08, 11:59am
Meat processor Silver Fern Farms has terminated a partnership agreement with PGG Wrightson, leaving the way open for alternatives to reinvigorate the red-meat industry. SFF made the exit yesterday after the failure of rural services firm PGGW to make a first payment toward the deal - hit by the credit crunch. However, the two parties remain in talks about a new deal reports Stuff. SFF has also floated the idea that rival Alliance Group and/or other meat processors might again be willing to examine how industry aggregation can be achieved. Keith Cooper said termination of the deal was made for practical reasons. "We couldn't keep staff, we couldn't keep shareholders in limbo for any longer giventhe fact PGGW couldn't deliver a date when they would be able to settle, or raise the equity." The termination enabled the parties to move on and see if any alternative deals between SFF and PGGW were feasible. SFF had not determined the amount or form of compensation it would seek to recover from PGGW.