Affco shareholders spurn Talley's proposal

By Phil Boeyen, ShareChat Business News Editor

Wednesday 17th April 2002

Shareholders in meat company Affco (NZSE: AFF) have rejected a proposal by Nelson frozen foods firm Talley's to lift its stake in the company.

The decision came at a special meeting in Auckland on Wednesday to consider whether to allow Talley's Fisheries to acquire 28.5 million shares at 38 cents from Green & McCahill Investments and Kilmacrennan Farm Limited.

Affco reports that 42.5 million votes were in favour of the transaction while 56 million votes were against the acquisition.

Had the purchase been approved Talley's would have increased its holding to 30.399% of all Affco securities.

Under the Takeovers Code any company wishing to take its stake to 20% or greater must offer the price to all shareholders or receive shareholder approval for the acquisition.

Affco notes that an independent adviser report from Deloitte Corporate Finance said the merits of the Talley's purchase would be to Affco's advantage.

"This was confirmed by the independent directors of Affco who recommended that shareholders approve the acquisition," the company says.

Executive chairman Sam Lewis said it was business as usual for the company.

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