Divorce for Ng¯ai Tahu and honey partner
South Island-based Nga¯i Tahu Holdings and its joint venture partner in ma¯nuka honey producer, Watson and Son, have agreed to separate their interests.
The divorce comes two years after Ngai Tahu invested in Watson and Son, and follows one of the worst honey seasons in a decade, amid reports of disharmony in the honey producing company.
The Nga¯i Tahu Holdings 2016 annual report shows a value of $92 million for its share in the partnership which was intended to be a long term investment.
Now, Nga¯i Tahu will become the owner of the honey business, and the founding Watson wha¯ nau will become the 100 per cent owner of the Ma¯ nukaMed half of the business.
The Nga¯ i Tahu Holdings board provided a media statement saying there would be no further comment, but said neither party was discussing a prospective sell down with any third party.
Recent unverified media reports have suggested US investors were circling the honey producer and had visited its offices in Masterton.
‘‘Both owners are excited and fully committed to the success of their respective businesses to achieve maximum potential.
‘‘An agreement with conditions to be satisfied has been concluded, however, as the basis of the split has been agreed there is a high expectation and confidence by all parties this will complete very soon.
‘‘Nadine Tunley has been appointed chief executive of honey business, and Denis Watson managing director of Ma¯ nukaMed.
‘‘Business for both will continue as usual,’’ Nga¯ i Tahu said.
‘‘This year has seen us operating through unprecedented challenges relating to one of the worst honey seasons on record.
‘‘To best ensure the future success of the company, the owners have agreed to split the ownership.’’
Ma¯ nukaMed provides healing products based on manuka honey including salves, ointments and dressings.
Watson and Son produces honey from producers around the North Island.
Before the split, the company reportedly had an annual turnover of about $30m.
Watson and Son has more than 40,000 beehives placed in some of the most remote mono-floral ma¯ nuka areas of New Zealand. It exports the honey overseas.