Meat processing shareholders from Silver Fern Farms have sealed the deal with Chinese firm, Shanghai Mailing after a vote which was conducted, came back with results of 82.2% vote in favour. Chairman, Rob Hewett, stated “It is an exciting day for co-op..
“The board believes this partnership will be a defining moment for our business, the co-operative as a whole, and our supplying farmers..
“We have a partner in Shanghai Mailing who will invest $261m in cash for a 50% share of Silver Fern Farms’ business, in partnership with the existing Silver Fern Farms co-operative. “The new partnership will allow us to invest in the things we want to, not just the things we need to, which has been the position in recent times.
“The investment will see Silver Fern Farms have no debt and a positive cash position at next year end.”
The potential partnership between rival meat processing cooperative, Alliance group, has been dismissed as Silver Fern published a statement which suggested Dunedin was not a cooperative factor of the future.
“We have of course extensively evaluated the potential for merger with or acquisition of all or part of SFF just as they have no doubt looked at us over the years,” said Alliance chief executive David Surveyor.
“The investment in SFF may be game- changing for them, but it is by no means game-changing for Alliance Group. Our model is about building a better business and creating value for our farmer shareholders.”