Fish company up meat works stake

Friday 11th June 2010

Talley's Group, the closely held food, fishing and dairy company, tightened its grip on meat company Affcoafter gaining conditional agreement to buy out a fellow shareholder as part of a full takeover.

The transaction involves Talley’s buying 118.6 million shares at 37 cents apiece from Toocooya Holdings, a diversified private investment group whose owners include the Spencer family.

Talley’s ends up with 76% of the company in a deal that values Affco at $187 million. The same offer would be open to all shareholders.

Talley’s has broadened and diversified its food investments with the controlling stake in Affco and interests including dairy production, as well as producing seafood and vegetables ready for the supermarkets.

Toocooya said it has conditionally agreed to sell the shares as part of an expected full takeover of the North Island meat processor. Shares of Affco last traded at 37 cents and have dropped 20% in the past 12 months, while the NZX 50 Index has gained about 7% in the same period.

Businesswire.co.nz

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