Silver Fern Farms shareholders say 'yes'
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PGG Wrightson Limited (PGW) | 12:53 pm, Monday 8 September 2008 | PGW | 1.500 |
 -0.030 |
(-1.96%) |
8 September 2008
FARMERS VOTE FOR CHANGE
Farmer shareholders in Silver Fern Farms have voted overwhelmingly in favour
of the partnership proposal with PGG Wrightson (PGW), taking a major step in
securing a sustainable future for New Zealand's red meat industry.
75.62 percent of the votes cast were in favour of the partnership. The vote
attracted a very high turnout, with more than 83.3 percent of the eligible
votes being cast. Remarkably, 100 percent of the votes cast at the Special
General Meeting today voted in favour of the proposal.
Eoin Garden, Silver Fern Farms' chairman, said he was delighted with the
result and the support of shareholders. "We strongly believe partnering with
PGW is in the best interests of Silver Fern Farms' suppliers and, going
forward, the wider pastoral sector. This is not just about Silver Fern Farms
and its shareholders; it's about the future of the red meat industry."
Under the partnership PGW will contribute $220m to recapitalise Silver Fern
Farms, creating an entity with shareholders funds of $510m and an equity
ratio of 80 percent. "It's an unprecedented injection of new capital into our
industry, and farmers and shareholders in Silver Fern Farms will benefit
significantly," said Mr Garden.
In a joint statement, Mr Garden and PGW chairman Craig Norgate said: "This is
a great day for both companies and indeed the red meat industry in New
Zealand. "We are excited by the opportunity to create a truly vertically
integrated supply chain - from plate to pasture - that better serves the
needs of international customers. We intend capitalising on the
opportunities presented by an increasingly affluent and sophisticated
international market, for high quality red meat products.
"Our relationship is based on a shared vision for the industry and an
alignment of commercial drivers. That vision also extends to a committed
drive for further industry consolidation, and this vote in favour of the
partnership is a clear mandate from our shareholders to pursue this
direction. We look forward to now being able to implement our strategies and
to make positive and value enhancing changes for all stakeholders."
The partnership transaction is to be implemented by 1 October 2008.
Ends
For further information:
Keith Cooper Brent Melville
Chief Executive Group Communications, Silver
Fern Farms
64 21 442 190 64 3 474 6595
64 27 444 1322
