Tidy Cedenco gain for Brierley

By Phil Boeyen, ShareChat Business News Editor

Wednesday 9th May 2001

Brierley Investments (NZSE: BRY) has pocketed $3.9 million on its investment in food company Cedenco (NZSE: CED) although it says the gain won't affect end of year results.

Brierley says its wholly-owned subsidiaries, Eglett Investments and Manco, have sold their entire 48.54% shareholdings in Cedenco to California-based SK Foods for $11.05 million net of the recent dividend.

The company says the book value of the investment was $7.57 million leaving an excess of the sale proceeds over book value of $3.9 million.

"The transaction is not expected to have any material effect on the Group's net tangible assets or earnings per share for the financial year ending 30/06/2001," the company says in a statement.

Brierley announced last year that it wanted to quit its Cedenco holding, prompting the Gisborne-based food processor to call for offers to buy 100% of the company.

However after several months the best offer was from SK Foods, a Californian food company which has taken a stake just under 55%.

Cedenco this week announced a leap in interim profit to a record $2.4 million on trebled sales of $11.9 million.

Increased certainty about the company's shareholding combined with the improved result has seen its stock lift around 20 cents in the past week to $1.65. SK Foods paid $1.52 per share for the company cum dividend.

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