The takeover offer by the Talleys group became unconditional after they acquired 85% of the shares in meat processor and dairy investment group AFFCO.
With a diverse range of agricultural and seafood investments this acquistion seems a natural fit for this company. Whether the new ownership of this company will be good for the NZ farmer suppling stock only time will tell.
Farmers have in the four largest processors a range of ownership structures who they can decide will give them the best long term return.
Olam Internationals offer for NZFSU ends a disapointing investment return for many shareholders, and showed poor management and development planning for PGGW.
Talley’s Group declared its takeover offer for Affco Holding unconditional and said it had acceptances amounting to almost 85 percent of the meat and dairy investment group. The offer of 37 cents a share was due to close yesterday reports Stuff. Talley’s, whose businesses range from frozen vegetable to seafood and ice cream, already controlled the company, with about 53 percent of the stock and had agreement to buy the 23.5 percent held by the Spencer family’s Toocooya Nominees.
The offer price was within the 34 cents to 44.4 cents independent valuation of the company. Talley’s didn’t offer a premium to mop up the remaining shares. Affco traded at the offer price in the days leading up to the offer. The shares peaked at 61 cents in August 2008. The agreement to buy Toocooya’s stake triggered the full takeover offer. Affco, NZ's fourth-largest meat processor and exporter, was established in 1904 and currently operates nine plants in the North Island and two plants in the South Island. The company owns 35 percent of Open Country Dairy, an independent dairy processor that buys regulated raw milk from Fonterra Cooperative Group.
Singapore-based Olam International said it now holds 50.1 per cent of NZ Farming Systems Uruguay (NZFSU). It added its takeover offer was unconditional reports Channel news Asia. Olam said shareholders who have already accepted the offer would receive S$0.68 (NZ$0.70) per share by this Friday, September 24.
It added that the strong support for the offer from NZFSU shareholders was a reflection of the full price being offered. Earlier this month, NZ Farming Systems Uruguay recommended shareholders accept the offer, in respect of at least part of their shareholding. It said the recommendation was based on the fact that Olam had increased its offer. Olam also gave its assurances regarding capital raising and farming operations.
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