Latest news with #DawnMeatsGroup
Otago Daily Times
7 days ago
- Business
- Otago Daily Times
Shareholder approval sought for Alliance sale
Site closures and asset sales are possible if farmer shareholders do not support Dawn Meats Group taking a 65% stake in Alliance Group for $250 million, the co-operative says. Yesterday, Alliance — the wholly farmer-owned co-operative — confirmed the rumour the Irish company was planning to take a majority stake. The deal is subject to shareholder approval and will require a minimum of 75% shareholder acceptance of those who vote, and greater than 50% of all shareholders voting yes at a special general meeting in Invercargill on October 20. If shareholders did not support the investment, the Alliance board would be obliged to enter into a process led by its banking syndicate which might involve possible asset sales, site closures and further cost-reduction initiatives, the co-operative said. Alliance is a major employer in the South with plants at Pukeuri, Mataura and Lorneville, along with Nelson, Dannevirke and Levin. It is owned by more than 4000 shareholders. If approved, the investment would reduce Alliance's short-term working capital facility by about $200m, accelerate the board's strategic capital expenditure programme and enable the distribution of up to $40m to the co-operative, subject to shareholder livestock supply, it said. Alliance chairman Mark Wynne said the announcement came after a two-year process to reset and recapitalise the business. Last year, Alliance appointed Craigs Investment Partners to explore external capital-raising options after posting a full-year after-tax loss of $95.8m for the year ending September 30, which followed a $70.1m loss the previous year, yet a record $116.3m profit in 2022. Established by three farming families in 1980, Dawn Meats has 24 facilities and more than 8000 employees in 10 countries, processing more than 3.5 million sheep and 1 million cattle per annum, with a core annual turnover of more than $5.8 billion. Speaking to the Otago Daily Times yesterday afternoon, Alliance chief executive Willie Wiese said feedback on the proposal included mixed views but was predominantly supportive. The business had been built up over generations and that was valued. Farmers had questioned if the company could trade its way out. Despite the challenges it had faced, it would be profitable this year. But an issue was the debt it was dragging along. When the record profit was announced in 2022, the company also had $107m debt at that time. It had taken two years but the company was now in a very different space and was a very different business. "We can trade our way out of it but the time it will take is far too long from a banking perspective," Mr Wiese said. While Alliance would be working hard for a yes vote, Mr Wiese said he would also be relentlessly working on "what if" the proposal was rejected. It would be up to the banks to determine what that would look like. Yesterday, James Anderson, who with fellow Waikaia farmer David Pinckney implored shareholders attending Alliance's last annual meeting in Gore in December to support 100% farmer ownership, said he was now "trying to drive down the middle line". While canvassing support to retain farmer ownership, Mr Anderson spoke with fully paid-up Alliance shareholders who were "disgruntled" with the co-operative's management. They had gone to competing companies, either with all or some of their stock and they wanted change. These were younger farmers from intergenerational farming families and they were "disgruntled about this very stoic attitude of why we have to be 100% farmer-owned". "What I know is bankers and our young farmers are seeing the business in a different light than what I am," he said. Mr Anderson, who started supplying Alliance shortly after starting farming in 1987, said the "elephant in the room" had been the drop in livestock numbers and the government's slow response to landuse change. Federated Farmers meat and wool industry group chairman Richard Dawkins urged farmers to attend farmer roadshow meetings — which begin on September 29 — to understand what was proposed so they could make an informed decision. "Apathy is not a solution," he said.
Otago Daily Times
7 days ago
- Business
- Otago Daily Times
Shareholder approval sought for sale
Site closures and asset sales are possible if farmer shareholders do not support Dawn Meats Group taking a 65% stake in Alliance Group for $250 million, the co-operative says. Yesterday, Alliance — the wholly farmer-owned co-operative — confirmed the rumour the Irish company was planning to take a majority stake. The deal is subject to shareholder approval and will require a minimum of 75% shareholder acceptance of those who vote, and greater than 50% of all shareholders voting yes at a special general meeting in Invercargill on October 20. If shareholders did not support the investment, the Alliance board would be obliged to enter into a process led by its banking syndicate which might involve possible asset sales, site closures and further cost-reduction initiatives, the co-operative said. Alliance is a major employer in the South with plants at Pukeuri, Mataura and Lorneville, along with Nelson, Dannevirke and Levin. It is owned by more than 4000 shareholders. If approved, the investment would reduce Alliance's short-term working capital facility by about $200m, accelerate the board's strategic capital expenditure programme and enable the distribution of up to $40m to the co-operative, subject to shareholder livestock supply, it said. Alliance chairman Mark Wynne said the announcement came after a two-year process to reset and recapitalise the business. Last year, Alliance appointed Craigs Investment Partners to explore external capital-raising options after posting a full-year after-tax loss of $95.8m for the year ending September 30, which followed a $70.1m loss the previous year, yet a record $116.3m profit in 2022. Established by three farming families in 1980, Dawn Meats has 24 facilities and more than 8000 employees in 10 countries, processing more than 3.5 million sheep and 1 million cattle per annum, with a core annual turnover of more than $5.8 billion. Speaking to the Otago Daily Times yesterday afternoon, Alliance chief executive Willie Wiese said feedback on the proposal included mixed views but was predominantly supportive. The business had been built up over generations and that was valued. Farmers had questioned if the company could trade its way out. Despite the challenges it had faced, it would be profitable this year. But an issue was the debt it was dragging along. When the record profit was announced in 2022, the company also had $107m debt at that time. It had taken two years but the company was now in a very different space and was a very different business. "We can trade our way out of it but the time it will take is far too long from a banking perspective," Mr Wiese said. While Alliance would be working hard for a yes vote, Mr Wiese said he would also be relentlessly working on "what if" the proposal was rejected. It would be up to the banks to determine what that would look like. Yesterday, James Anderson, who with fellow Waikaia farmer David Pinckney implored shareholders attending Alliance's last annual meeting in Gore in December to support 100% farmer ownership, said he was now "trying to drive down the middle line". While canvassing support to retain farmer ownership, Mr Anderson spoke with fully paid-up Alliance shareholders who were "disgruntled" with the co-operative's management. They had gone to competing companies, either with all or some of their stock and they wanted change. These were younger farmers from intergenerational farming families and they were "disgruntled about this very stoic attitude of why we have to be 100% farmer-owned". "What I know is bankers and our young farmers are seeing the business in a different light than what I am," he said. Mr Anderson, who started supplying Alliance shortly after starting farming in 1987, said the "elephant in the room" had been the drop in livestock numbers and the government's slow response to landuse change. Federated Farmers meat and wool industry group chairman Richard Dawkins urged farmers to attend farmer roadshow meetings — which begin on September 29 — to understand what was proposed so they could make an informed decision. "Apathy is not a solution," he said.
RNZ News
12-08-2025
- Business
- RNZ News
Overseas company wants to buy stake in NZ red meat co-operative Alliance Group
The Board of Alliance Group announced that its shareholders will vote on an opportunity to enter a strategic partnership with Dawn Meats Group. Photo: Supplied The future of New Zealand red meat co-operative Alliance Group may soon be in the hands of owners overseas. Irish company Dawn Meats Group proposes to buy a 65 percent stake for $250 million, subject to shareholder voting later this year. Dawn Meats is one of Europe's largest meat processors with annual revenue of $5.8 billion. It has been linked to a potential deal since last month. Farmer-shareholders in Alliance Group were informed on Tuesday morning of the board's preferred and unanimously recommended option. Marlborough sheep and beef farmer Scott Adams is a shareholder in Alliance. Adams said he'd have preferred to see a 50:50 ownership deal to maintain local control. "To be straight up it's a bit disappointing. Alliance was the last freezing works co-op left," Scott Adams said. "It will be interesting to see what they say on making the industry stronger and making Alliance stronger in this proposal. "In a perfect world keeping a majority owned by New Zealand farmers would be great, but we've got to be realistic too." Photo: Supplied Alliance Group chair Mark Wynne said the board fully endorsed the deal. The proposed transaction would see Dawn Meats Group values Alliance at NZ$502 million on an enterprise basis - subject to shareholder acceptances, High Court and regulatory approvals. Proceeds from the transaction would be used to reduce Alliance Group's short-term debt by $200 million. It would enable the distribution of up to $40 million to the co-operative. Alliance Group Chair Mark Wynne. Photo: Supplied "Alliance was built by farmers for farmers and has a proud co-operative legacy. The process we have undertaken on behalf of our farmer-shareholders to meet our banks' requirements means we are now a much fitter and stronger business. However, we need this investment to provide certainty and confidence and ultimately unlock more value for our farmers," Mark Wynne said. He said Alliance ran out of local options to clear its debt and had no choice but to accept the next best offer. "With Dawn Meats' balance sheet power, strength in beef and market access across the United Kingdom and Europe, and Alliance's strength in lamb and market access across China, wider Asia and North America, there are significant commercial and operational synergies at stake - with potential for our shareholders to see the value of their residual 35 per cent stake grow over the long term." The sale will require a high level of approval. It will be implemented via a Scheme of Arrangement and will require a minimum of 75 per cent shareholder acceptance of those who vote, and greater than 50 per cent of all shareholding voting yes at a Special General Meeting (or via proxy) to be held in Invercargill in mid-October. Federated Farmers meat and wool chair Richard Dawkins said farmers need to weigh up the options carefully. He recommends they attend the farmer road shows which will begin in late September. Photo: Supplied Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Otago Daily Times
11-08-2025
- Business
- Otago Daily Times
Farmers to vote on co-op's 65% sale to overseas group
The Alliance Group's Pukeuri plant. Photo: Sally Rae. Irish meat company Dawn Meats Group will take a 65% stake of Alliance Group, subject to the co-operative's farmer-shareholders giving the deal a tick. This morning, Alliance confirmed the rumour that had been circulating, following a capital raise process, that the Irish company would pay $NZ250 million in the proposed transaction, subject to shareholder acceptances, High Court and regulatory approvals. Proceeds from the transaction would be used to reduce Alliance's short-term working capital facility by approximately NZ$200 million, accelerate the board's strategic capital expenditure programme and enable the distribution of up to $40 million to the co-operative, subject to shareholder livestock supply, the co-operative said in a statement. Alliance chairman Mark Wynne said the announcement comes after a two-year process to reset and recapitalise the business. The transaction is to be implemented via a Scheme of Arrangement and will require a minimum of 75 per cent shareholder acceptance of those who vote, and greater than 50 per cent of all shareholding voting yes at a Special General Meeting (or via proxy) to be held in Invercargill in mid-October. If shareholders do not support the proposed investment, the Alliance board would be obligated to enter into a process led by its banking syndicate, which may involve possible asset sales, site closures and further cost-reduction initiatives, the statement said.
