Fonterra to offer at least 20% premium for Beingmate shares in deal to drive Anmum sales – Jonathan Underhill:
(BusinessDesk) – Fonterra Cooperative Group will offer a premium of at least 20 percent for a one-fifth stake in Beingmate Baby & Child Food as part of a $615 million investment in a partnership to drive baby food sales into China.
Fonterra will offer 18 yuan a share for Beingmate stock in a partial tender offer that will be supported by chairman Wang Zhentai, who will sell down his stake to about 33 percent in the transaction.
Based on Reuters data, Beingmate has 1.02 billion shares on issue, suggesting the offer values the Chinese company at 18,360 billion yuan and Fonterra would pay 3.67 billion yuan, or NZ$714 million to build a 20 percent stake. The shares last traded at 14.36 yuan before being halted from trading, according to Reuters data. . . .
Fonterra Shareholders’ Council Chairman, Ian Brown said today’s announced investments in New Zealand’s milk pools and a global partnership with China’s Beingmate were bold moves that would be welcomed by the Co-operative’s Farmers.
Mr Brown: “There is a direct link between the $555 million investment in the Lichfield and Edendale sites and the $615 million investment in the partnership with Beingmate in that both align with the Fonterra strategy of increasing the volume and value of our milk.
“The investment in New Zealand operations is a real positive and will optimise the Milk Price we receive by enabling our Co-op greater flexibility in deciding which products our milk goes into and when. . . .
Farmers will be breathing a huge sigh of relief with Fonterra’s benchmark forecast payout for 2014/15 being held at $6 per kilogram of Milk Solids (kg/MS), while other aspects of the announcement are a great boost of confidence in New Zealand agribusiness.
“This is as far from milk and disaster as the moon is,” says Andrew Hoggard, Federated Farmers Dairy chairperson.
“While this season remains a super trim one last season was definitely a silver top one.
“The milk price hold is good news given there’s been widespread speculation about it sliding below the $6 mark, however, we’re not out of the woods yet. We still advise farmers to err on the side of caution by budgeting in the mid-$5 payout range. . .
Associate Conservation Minister Nicky Wagner today announced $475,000 in funding for four Otago conservation projects.
Community Conservation Partnership Fund grants will be made to the Orokonui Ecosanctuary, Landscape Connections Trust, Otago Peninsula Biodiversity Group, and Herbert Heritage Group.
“The projects these groups are advancing align perfectly with the Department of Conservation’s goals of connecting more urban dwellers to conservation and working in partnership with others.
“The Orokonui Ecosanctuary is recognised as the flagship biodiversity project in the South Island and is achieving its aim of restoring the coastal ecosystem to pre-human state. . .
The long arm of health and safety gets longer – Andrew McGiven:
We’ve all heard about the Marlborough farmworker copping $15,000 worth of fines related to a quad bike. Helmet use is in the Department of Labour’s (now Worksafe NZ) ‘Guidelines for the safe use of quad bikes.’ .
While there’s been plenty of discussion about the fine what has slipped under the radar are other recommendations in the guide. One is recognising dangerous areas on-farm and establishing ‘no-go’ zones in your health and safety plans.
Another case, highlighted for us by Neil Beadle, a Partner at Federated Farmers’ legal advisors DLA Phillips Fox, rams home the bite of these recommended ‘no-go’ zones. It involved a Mangakino sharemilker with an otherwise good record who tragically lost a farm worker when their quad bike flipped. . . .
The growth in the use of fodder beet as a forage crop in the beef industry has been so rapid, that seed supplies for the coming growing season are expected to run out.
That is the prediction from Dr Jim Gibbs, a senior lecturer in livestock health and production at Lincoln University, who has done years of research on feeding cattle on what has become a revolutionary crop in this country.
Fodder beet is a bulb crop related to beetroot but can grow to huge sizes.
Dr Gibbs’ work was initially for the dairy industry, but the demand for fodder beet really exploded when he introduced it to the beef industry, and he says it has become the fastest growing forage crop by a long shot. . . .