PGW wants 50% of SFF

The grapevine was right: PGG Wrightson is planning to take a 50% share in Silver Fern Farms  (formerly PPCS) at a cost of $220m.

This announcement answers the question asked on Rural Network: who killed meat industry taskforce?

This entry was posted on Monday, June 30th, 2008 at 1:20 pm and is filed under agriculture, business, rural. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

6 Responses to “PGW wants 50% of SFF”

  1. Colin E McIntyre Says:
    July 3, 2008 at 5:41 pm

    Under the definition of transacting shareholders would it be correct to assume that supplier shareholders of Silver Fern Farms are also transacting shareholders and this combined with PGG Wrightsons Transacting shares would give well over the 60% shareholding of transacting shareholders required .
    For further eddification visit the following websites
    http://www.companies.govt.nz/cms

    http://www.simpsongrierson.com/pdf_display.cfm?pathto=/assets/publications/corpad/FYI_CorpAdvisory_June06.pdf

    Colin E McIntyre | July 3, 2008 |

  2. Colin E McIntyre Says:
    July 6, 2008 at 8:05 pm

    Colin E McIntyre | July 3, 2008 |

    To carry the concept further should we include the likes of CRT and the major Fertiliser Companies in the Loop?

    Colin E McIntyre | July 6, 2008

  3. homepaddock Says:
    July 6, 2008 at 10:17 pm

    Colin – Why stop there? :)

  4. Colin E McIntyre Says:
    July 7, 2008 at 11:51 am

    Hi,
    Re “why stop there?” Should we have a ” Think Tank ” of Shareholders and more discussion before the next round of Public meetings?
    What are yours and others thoughts?
    Colin.

  5. Geoff Heaps Says:
    July 10, 2008 at 12:17 am

    In response to yesterday’s discussions re the limit on outside investment in co-operative companies in NZ:

    A co-operative company has a limit of 40% outside equity placed on it by law but – and there is always a but – it is possible to have a “Claytons” co-op. For example, the Fonterra preferred option is to have the co-op sell its assets & liabilities to a listed company.

    The following is an extract from Fonterra’s discussion document on Capital Structure and in particular, the Preferred Option.

    “Today we have a Supplier Co-operative, which is 100 per cent owned and controlled by farmers.

    What we are proposing under our preferred option is to keep our Co-operative in place – let’s call it Fonterra Farmer Co-operative.

    At the same time we would create a second company – let’s call it Fonterra.

    All the assets and liabilities in today’s co-operative would go into Fonterra. This would include the stainless steel, the Brands and Ingredients businesses – the entire business as we know it today. Until there is a second shareholder vote, both of these organisations would be 100 per cent owned and controlled by farmers, the same as today. But ultimately, the second company, Fonterra, would be listed.”

    The PGG Wrightson / Silver Fern Farms proposal may well be structured on similar lines and therefore get around the Co-operative Companies Act which limits non-transacting shareholders to less than 40% of the company.

    Trust this adds some clarity to the current debate.

    Geoff

  6. Your Page « Homepaddock Says:
    July 10, 2008 at 7:18 am

    [...] new point on an old post where it’s unlikely anyone else but me will find it. (This happened here [...]

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