MD Andy Borland attributes China Resources’ exit to “change in strategic direction” on part of Hong-Based investor
The managing director of New Zealand’s largest apple exporter Scales Corp says a “change in strategic direction” prompted its largest shareholder, China Resources Enterprise (CRE), to sell off its 15 per cent stake and exit the company.
As reported on Thursday, CRE’s decision was announced via the NZ Stock Exchange and came eight years after the Hong Kong-based group invested around NZ$56m in Scales, which owns grower-exporters Mr Apple and Fern Ridge Produce.
According to Scales MD Andy Borland, this week’s sell-off was facilitated by Craigs Investment Partners and CRE’s shares have been purchased by a number of institutional and retail investors in New Zealand and Australia.
In a separate announcement, it was revealed that five entities including NZ wealth management and asset management FirstCape Group Limited had acquired some of the shares.
The others named were FirstCape subsidiaries Harbour Asset Management, BNZ Investment Services, Jarden Wealth, and JBWere (NZ) Nominees.
“China Resources has been a supportive shareholder over the past eight years and has provided good insight into the China market for Mr Apple, as well as a positive contribution to Scales’ Board,” Borland commented.
“They have had a change in strategic direction recently which has led to the sale of their stake. We wish them all the best for the future.”
He added: “The sale is a good result for all parties involved and it is particularly pleasing to see the strong support for the company from the investor community”.
As a result of the sale, CRE’s Qi Xin has resigned from the board as a director.
