China's biggest meat processor is to take a 50-percent stake in New Zealand's biggest meat cooperative under a deal announced Tuesday.
The board of Silver Fern Farms on Tuesday unanimously recommended an offer of 261 million NZ dollars (165.03 million U.S. dollars) from Shanghai Maling Aquarius Group for a 50:50 partnership with the supplier-controled Silver Fern Farms Co- operative.
The investment was "a genuine game-changing opportunity" that would accelerate the business, specifically in China, Silver Fern Farms chairman Rob Hewett said in a statement.
"The board considered many options for new capital, both locally and internationally, but Shanghai Maling stood out for the enormous opportunities and ongoing benefits for the cooperative, its shareholders and supplying farmers," said Hewett.
Chief executive Dean Hamilton said Shanghai Maling, which is 38- percent owned by Bright Food Group, provided a huge opportunity in China, the fastest growing red meat market in the world.
"Shanghai Maling's integrated supply chain model will allow us to advance our product development and consumer marketing abilities in that market in ways we could not do ourselves, or with any other local or international investor," Hamilton said in the statement.
The deal was subject to shareholder approval, which is expected at a meeting planned for Oct. 16, and is also subject to regulatory approval in New Zealand and China.
