Sunday, 18 October 2015 21:11

Deal more than just about cash - Hewett

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Silver Fern Farms chairman Rob Hewett says the 82% shareholder support for the Shanghai Maling joint venture was very pleasing.


He says the $261 million deal is more than just about the cash.


"We wanted to retain control of the co-op which we got, we got the right partner who is aligned with us strategically; we also wanted non-exclusive rights to sell products around the world.

"We got all of this; it's more than just about the cash."


Hewett told a media conference after the vote last Friday that the 67% turnout among the total eligible votes was higher than what the co-op attracts in director elections.


Asked if the 17% who voted against the deal could exit the co-op. Hewett he will wait and see.


However, SFF chief executive Dean Hamilton doesn't believe to many suppliers will switch to other processors.


"There are a number of shareholders who did not back the deal but is now getting behind the co-op; these suppliers want to continue to supply SFF and they believe in our strategy.


"At least two big shareholder suppliers said they would continue to supply, so that's good."


SFF board members and directors did 23 roashow meetings; Hewett says for him the outcome was never in doubt.


The deal must be approved by regulators in both countries. SFF is confident the OIO will give the deal the green light.

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