Victoria food processor attracts Brierley cash

By Phil Boeyen, ShareChat Business News Editor

Thursday 1st November 2001

Brierley Investments (NZSE: BRY) has taken a stake in an Australian food company several months after selling its shares in New Zealand food processor Cedenco.

Brierley announced its decision to exit Cedenco last year claiming the assets was no longer strategic, and its holding were eventually purchased by California-based S K Foods.

However the investment company has now bought back into the food processing business, this time paying A80 cents per share for 7.1 million shares in Australia's SPC Limited. The purchase gives BIL a 10% stake.

SPC processes and markets fruit, vegetables and other food products. In the half-year ended June the company reported A$130 million in sales with operating profit of A$7 million.

The company is currently finalising a proposed merger with another food business, Ardmona. A regulatory decision on the merger is due soon with expectations that it will be completed sometime early next year.

SPC says it is confident that the merger will be earnings per share positive from the first year of operation.

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