Russians complete Canterbury factory buyout

Russian food company Nutritek Group has taken over 100 percent of New Zealand Dairies Ltd to control its South Canterbury milkpowder factory.

New Zealand Dairies Ltd opened the plant at Studholme, in South Canterbury, in October 2007, using about $100 million of commercial and convertible loans from Nutritek.

The Russian company was taken to the High Court at Auckland in May after it failed to meet agreed deadlines to buy out three minority shareholders, including Aad van Leeuwen, South Canterbury's biggest dairy farmer.

Mr van Leeuwen, along with Tauranga's Greg Misson and Te Aroha accountant Keith Diprose, owned the 17.65 per cent of NZDL which the company has just acquired.

Nutritek is part of Nutrinvestholding which floated its shares in April 2007, sold its Russian dairy business for $US350 million with the aim of investing in South-East Asia.

Reuters reported late last year the Nutritek was planning A $US100m share issue, and that one of its two major shareholders, Marshall Capital Partners, could be buying the new shares in order to substantially increase its stake in the company a low cost .

Nutritek effectively rescued the Studholme dairy factory during construction when the original backers ran out of money, and provided $24m to save the factory.

The factory is expected to supply its Asia division with dairy and baby food products, including whole milkpowder and infant formula.

Nutritek chief executive Jim Dwyer said the company saw a great future for the production of value-added milk products in the region. "We have a new board in place and they are looking forward to diversifying by turning New Zealand milkpowder into baby product," he said.

NZPA