New Zealand’s Scales Corporation has announced the acquisition of a 5.95 per cent shareholding in Turners & Growers (T&G), and options to acquire a further 4.03 per cent.
The combined holding will effectively prohibit BayWa Aktiengesellschaft, the German agribusiness company in the final stages of its T&G takeover bid, from obtaining a 90 per cent share and forcing a compulsory buyout of remaining shares.
Scales, which owns New Zealand’s largest integrated apple grower-packer-exporter Mr Apple, is intent on T&G staying a publically listed company, as well as taking part in setting its direction, the company’s managing director Andy Borland told Asiafruit this afternoon.
“We felt keeping T&G listed was important,” he said. “We have no intention of upping that stake or entering into any bidding war `with BayWa`, it just gets us a seat. We want to be active minority shareholder.”
The move is in line with recommendations by T&G’s independent adviser KordaMentha that minority shareholders maintain their stakes in the company following BayWa’s acquisition of 64 per cent of T&G shares from the Guinness Peat Group (GPG).
Borland said Scales wanted to work more closely with T&G and subsidiary Enza, and is interested in exploring opportunities for consolidation in New Zealand’s apple industry.
“We’re seeing opportunities to work closer with T&G and Enza to reduce some of the supply chain problems and improve the situation for growers,” he said.
“We haven’t got a fixed plan, but to the extent we can influence things as a minority shareholder, we would like to work more closely together.”
The future of New Zealand’s pipfruit sector was solid, he added, particularly in light of export growth in the Middle East and Asia, and opportunities in Australia.
“We’re positive about the apple industry. It’s got some work to do to keep the possibility in the orchards. It’s very important the growers are profitable to keep the industry vibrant.”
