Two kiwifruit post-harvest firms in New Zealand have announced their merger to create a new, grower-owned supply co-operative.
Bay of Plenty companies Satara and EastPack have struck a cash and share-issue deal which will see investor-shareholders in Satara offered NZ$1.25 a share and transactor-shareholders offered a 1:1 Equity stake in EastPack. The arrangement is subject to 75 per cent shareholder approval, grower commitment by each party as well as various consents and finance approvals from banks.
After the merger all growers with transactor shares will then have the same rights. This includes being entitled to any future rebates.
The offer will be detailed in a prospectus due to be released in the middle of next month. EastPack’s board of directors is also looking at the possibility of issuing further EastPack investor shares for all shareholders in the new organisation.
Both chairmen view the merger as an opportunity to enhance competitive advantage through increased scale, boosting efficiencies and quality.
“We are excited that the proposed merger would mean 100 per cent grower ownership,” said Satara chairman Hendrik Pieters. “For some time it has been recognised there is a natural fit between these two companies.”
EastPack chairman Ray Sharp said the two were like-minded co-operatives: “EastPack’s vision is world class from orchard to market. To realise this vision and related merger benefits continued capital investment is required to upgrade and expand post-harvest facilities. The merger will give growers the collective financial clout.”
Both also added their support for the single desk system and said they aim to have the new business up and running with integrated operations before the start of the 2011 season.
