Silver Fern Farms shareholders approve stake sale to China's Bright

Yashili International Holdings

16/10/2015 01:53

WELLINGTON, Oct 16 (Reuters) - Shareholders of New Zealand's 
biggest meat co-operative Silver Fern Farms on Friday voted to 
allow China's state-owned Bright Food Group to take a half-share 
of the firm, giving China a foothold in a big meat market and a 
significant exporter.   
     The New Zealand sheep and beef exporter said last month 
that it would sell a 50 percent stake to food processor Shanghai 
Maling Aquarius  600073.SS , a unit of China's Bright 
 SHMNGA.UL , for NZ$261 million ($178 million) giving it funds 
to repay debt and helping to boost its exports to China.  
    The deal, expected to completed between March and June 2016, 
was supported by 80 percent of shareholders who voted, Silver 
Fern Farms said in a statement. 
    The farmer-owned co-operative controls about 27 percent of 
New Zealand's beef and sheepmeat export market but has been hurt 
by a slump in sheep meat prices and has struggled to make deep 
inroads into growing export markets. 
    Chinese companies have in recent years been attracted to New 
Zealand's agricultural sector as the Asian giant seeks sources 
of high-quality protein to feed its fast-growing middle class. 
However, some Chinese investors have hit roadblocks from locals 
opposed to foreign ownership of assets.  
    New Zealand is the world's biggest sheepmeat exporter and 
fifth-largest overseas supplier of beef, sending roughly 
one-third of its exports by value to China in the year to June.  
   
    Some farmer-shareholders had been against selling a stake of 
the co-operative to a Chinese company, with one shareholder 
telling New Zealand media this month that there was an 
alternative funding arrangement if shareholders turned down the 
Shanghai Maling partnership. 
   Silver Fern Farms said in a statement last week that the 
board had not been given any details of the alternative funding 
arrangement.  
    The deal must obtain approval from Chinese regulators and 
New Zealand's Overseas Investment Office (OIO), a body that 
supervises foreign bids for sensitive assets. 
    New Zealand's government last month unexpectedly blocked the 
$56 million purchase of a local farm by China's Shanghai 
Pengxin, which had been approved by the OIO, amid public 
concerns about foreign land ownership.  urn:newsml:reuters.com:*:nL4N11N06N 
 
($1 = 1.4635 New Zealand dollars) 
 
 (Reporting by Charlotte Greenfield) 
 ((charlotte.greenfield@thomsonreuters.com; +6448027979; Reuters 
Messaging: charlotte.greenfield.thomsonreuters.com@reuters.net)) 
 
Keywords: BRIGHT FOOD GRP NEWZEALAND/SILVERFERN