Cedenco hints at record results

Gisborne-based Cedenco has confirmed that the sale of the Brierley (NZSE: BRY) and Mangatu Investments stake has been completed, giving California food company SK Foods a majority holding at a price of $1.52 cum dividend.

Cedenco had been hoping to sell all of the company after last year seeking expressions of interest from prospective investors.

In the wake of only a partial sale chairman, Basil Logan, has moved to soothe investors.

"The directors understand that some shareholders will be disappointed that a 100% sale has not been achieved through the process in which the company invested, but believe that the involvement of SK Foods and the prospect of record earnings by Cedenco in the current year should give all shareholders confidence about the future value of their investment in the company."

Mr Logan adds that the strong year growth that the company has experienced since its restructuring in 1997 is beginning to pay off handsomely for shareholders. The company is due to release its interim profit result tomorrow.

SK Foods chairman, Scott Salyer, says he is delighted with his company's investment in the New Zealand operator.

"Cedenco's skilled staff and range of high quality products had established a strong market reputation, particularly with the discerning and rapidly expanding Asian food manufacturers."

Mr Salyer is promising that the involvement of SK Foods will bring many years' experience in large-scale production and marketing to the partnership.

Cedenco says the entry of SK Foods as the company's major shareholder also removes previous uncertainty in the share register.

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