Talley's Group, the Motueka-based maker of foods ranging from frozen fish to ice-cream, has agreed to buy up to 14.99 per cent of Open Country Dairy from Singapore's Olam International for as much as $46.5 million.
The deal will lift Talley's holding to as much as 70.5 per cent from 55.5 per cent.
The sale price is close to the current carrying value of the investment in Olam's accounts, it said. Olam's stake will reduce to as low as 10 per cent, leaving it as the second-largest shareholder just ahead of Dairy Investment Fund on 9.99 per cent.
Talley's Group is required to make a partial takeover offer under the terms of the Takeovers Code and its transaction with Olam will be a combination of a direct sale of shares and acceptance of the offer, Olam said.
"The transaction will release cash for Olam while still maintaining product off-take arrangements with Open Country, which are strategically important for Olam's dairy supply chain business," it said.
Talley's, which is controlled by Motueka's Talley family, has widened its interests in the food industry in recent years. AAP
- © Fairfax NZ News
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