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.
