Dawn Meats is pleased to announce that it has been selected by the board of Alliance Group as the preferred long-term strategic partner of the New Zealand-based meat producer.
The proposed partnership, which is subject to shareholder approval, would see Dawn Meats invest NZ$250 million to acquire 65 per cent of the shares in Alliance Group. Farmer-shareholders in Alliance Group were informed of their board’s preferred and unanimously recommended option on Tuesday. In addition to shareholder acceptances, the transaction is also subject to New Zealand High Court and regulatory approvals.
If approved, proceeds from the proposed transaction would be used to reduce Alliance Group’s short-term working capital facility by NZ$200 million, accelerate the Board’s strategic capital expenditure programme and enable the distribution of up to NZ$40 million to the Alliance co-operative, subject to shareholder livestock supply.
Full story in this week’s Print & Digital Edition.
