Talley's gets Affco advisor clearance

By Phil Boeyen, ShareChat Business News Editor

Tuesday 2nd April 2002

It'll be business as usual at meat company Affco (NZSE: AFF) if Nelson-based shareholder Talley's lifts its stake to 30%, according to an independent report.

The frozen food firm already owns around 19.4% of Affco but wants to buy a further 10.5% at 38 cents from two shareholders - Green & McCahill Investments and Kilmacrennan Farm Limited.

In a report on the proposed purchase Deloitte Corporate Finance says the bigger stake will not significantly increase Talley's control over the company either at board level or in the day to day operations.

The report says the transaction is also unlikely to have any significant impact on Affco's share price or the liquidity of the company's shares in the near future.

The directors of Affco have recommended the approval of the share purchase "on the grounds that the company's long term interests will be better served by the stability they consider inherent in the proposed acquisition, and they consider the proposed acquisition will not detrimentally affect control of the company."

Under New Zealand's Takeovers Code a company can take its holding to between 20% and 50% by "acquiring existing securities with target company shareholder approval."

A special meeting to consider the deal will be held in Auckland on April 17, 2002.

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