Early date for SFF marriage

Silver Fern Farms shareholders can look forward to an early Christmas present this year as the co-operative has announced it will bring forward its merger with Chinese company Shanghai Maling and receive an injection of $267 million - more than the $261m originally stated.

Initially planned for January 4 next year, the transaction could be completed earlier because ‘‘with everything ready ahead of time it makes sense’’, said Silver Fern Farms (SFF) chairman Rob Hewett.

‘‘There is little merit in simply waiting. Both boards are keen to get on with the partnership and deliver on the benefits already identified. The final date for completion will be confirmed shortly.’’

It is understood the sign-off date will be mid-december. After the investment is completed, SFF will pay a special dividend of 30c per share to all ordinary and rebate shares expected to be paid before March 31 next year, and will begin the redemption of the remaining about $5m of supplier investment shares outstanding.

Shanghai Maling, a subsidiary of Bright Foods, was granted Official Information Office approval for the deal in September after a year-long campaign by promoters and opponents.

Shanghai Maling will invest about $267m in cash in return for a 50 per cent stake in SFF. The additional $6m above the original estimate, which was subject to a net tangible asset adjustment at September 30 last year, is an adjustment for advisory costs and the cost of redeeming any rebate and supplier investment shares up until completion, SFF said in a statement. Of the $267m, $57m will reside with the co-operative, along with the co-operative’s 50 per cent shareholding in Silver Fern Farms Limited.