Richina cuts venison stake

The company says it has sold its Mair Venison investment for a small premium above the book value of $13.5 million to a private investment company associated with New Zealand Deer Farms.

Richina chairman, Sir Allan Wright, says although the business made a $4 million profit before tax and interest last year on sales of $43 million, the new owner offers other advantages.

"We believe that we have developed Mair Venison in its present form to its full potential, and that it is in the best interests of both Richina Pacific and Mair Venison that we sell at this time.

"The prospect of the deer farming and breeding activities of New Zealand Deer Farms being associated with Mair Venison's production and marketing activities will, in our view, provide an enhanced deer supply and ensure its continued development as a leading value added exporter of venison."

Sir Allan says the investment in deer farming and breeding activities is an area in which Richina Pacific has no particular expertise or interest.

Mair Venison is being sold as a going concern and employee numbers are not affected by the change in ownership.

Although the company doesn't say which of its other businesses will benefit from the sale, it is likely to put some of the money towards growing its leather processing business.

Last year Richina Pacific made a tax-paid profit of $4.7 million. Most operations were profitable although its aquarium in China, Blue Zoo Beijing, lost $37,000.

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