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New Zealand red meat processing firm Silver Fern Farms has completed ita partnership with China's Shanghai Maling on 6th December 2016, securing a strong future for the company
Rob Hewett, the chair of Silver Fern Farms, says the the completion of the US$267mn investment into Silver Ferns will be welcome news to both suppliers and shareholders.
“This partnership is a genuine game-changer for Silver Fern Farms. It delivers a strong and sustainable capital structure, the resources to accelerate our plate to pasture strategy in selected global markets and the capital to invest in optimising our production facilities and capability. Importantly, it brings a collaborative and connected partner in the fastest growing red meat market in the world, China.
“We have had overwhelming support from our shareholders throughout this process, and we are excited by the opportunities this partnership with Shanghai Maling will provide.”
Shanghai Maling have put in US$267mn liquid investment in return for a 50 per cent stake in Silver Fern Farms’ business (now named Silver Fern Farms Limited). Of the total amount invested, US$57mn now resides with the Co-operative, alongside the Co-operative’s 50 per cent holding in Silver Fern Farms Limited.
In association with the deal, the Co-operative Board intends to announce in the new year, the process for the redemption of the approximately US$5mn of remaining supplier investment shares, and in January, the terms of the US$35mn special dividend for the holders of ordinary and rebate shares. Both are expected to be completed by the end of February 2017.