Special meeting on Shanghai Maling deal 2 May 2016
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
- New Zealand food prices fall in February Business
Monday 02 May 2016 10:08 AM
Silver Fern reluctantly agrees special meeting on Shanghai Maling deal
By Tina Morrison
May 2 (BusinessDesk) - Silver Fern Farms, New Zealand's largest meat processor, will hold a special meeting of shareholders on its planned tie up with China’s Shanghai Maling Aquarius, despite saying it "is of no benefit" and risks being "disruptive" to the deal.
The meeting will be called after Silver Fern received a request from some of its farmer shareholders.
The Dunedin-based meat processor is preparing for the meeting in accordance with the Companies Act and the company's constitution after receiving a request from John Shrimpton and Blair Gallagher, representing a group of 80 shareholders, it said in a statement.A meeting between the board and Shrimpton scheduled for today was cancelled by Shrimpton late last week.
Silver Fern received approval in October from shareholders for the partnership with Shanghai Maling, which it expects will allow it to pay off debt and provide it with funds to upgrade plants and pursue its strategy of selling more, higher value branded products. Shrimpton believes the proposed deal wasn't properly approved by shareholders and has asked for the meeting to allow shareholders to reconsider it, the company said.
"The board considers that convening a meeting along the lines requisitioned is of no benefit to the company or its shareholders and is not an effective use of the company’s management and financial resources," Silver Ferns said in its statement. "It risks being disruptive to satisfaction of the remaining conditions to the investment by Shanghai Maling, to the relationship with Shanghai Maling, and ultimately to the company itself, our shareholders and shareholder value."
The Overseas Investment Office is assessing the application from Shanghai Maling which it received in October and expects to make a decision ahead of Shanghai Maling’s June 30 deadline.
The deal involves Shanghai Maling Aquarius, a unit of China's state-owned Bright Food Group, taking 50 percent ownership of the meat processor in return for $261 million of cash, a special dividend, and funds to bankroll the cooperative for seven years.
The New Zealand First party has been campaigning against the move, claiming last week that there was a shareholder revolt against the sale. The party last month lodged complaints about the proposed sale with the Financial Markets Authority and the Companies Office's Registries Integrity and Enforcement Team, claiming the meat processor had provided shareholders with misleading information on the state of the company’s accounts and that the notice of meeting was structured so the deal was not deemed a significant transaction, lowering the level of shareholder support needed for it to be approved.
Silver Fern said it believed the investment by Shanghai Maling was approved by shareholders in compliance with all relevant laws, regulations and the company's constitution and it's legally bound to complete the investment once remaining conditions are satisfied.
The restructure of the company has already been completed and the only substantive step remaining once conditions are satisfied is for new shares to be issued, it said.
(BusinessDesk)
ends
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more