July 21, 2010

 

NZ dairy draws international acquisitions

New Zealand dairy has drawn attention from international buyers, with Singapore-based agribusiness and food ingredients group Olam International making a takeover bid for NZ Farming Systems Uruguay, and China's Bright Food Group buying a 51% share in Synlait.

 

Olam has offered NZ$0.55 (US$0.39) a share for the 81.55% of NZ Farming that it does not already own, a bid worth NZ$109.6 million (US$78.4 million). Second-seed shareholder PGG Wrightson, with an 11.5% stake in the company, has already accepted the offer in a 'lock-up' agreement.

Bright Food's NZ$82-million (US$58.7-million) purchase of Synlait, a Canterbury-based milk processing company will provide a source for high-quality infant and whole milk powders for Chinese consumers.

 

Both deals are subject to approval by shareholders and the New Zealand Overseas Investment Office.