NZ buyers fordairyholdings

Dairy Holdings looks set to stay in New Zealand ownership, with existing shareholders said to be buying the remainder of one of the country’s largest dairy groups.

Receivers are to make an announcement about the sale at the end of the week, but Fairfax Media understands the stake has been bought by the existing shareholders, who have pre-emptive rights.

The 33.6 per cent stake in Dairy Holdings came on the market after South Canterbury Finance (SCF) was tipped into receivership on August 31, 2010, prompting a $1.59 billion payout under the Government Guarantee Scheme.

Dairy Holdings operates 58 dairy units on 14,201 hectares in the South Island and is one of the key assets of SCF that receivers have been trying to sell.

Former SCF chairman Allan Hubbard had transferred the stake to SCF in 2008 in a bid to shore up the company, said to be worth $75.7 million at the time.

SCF receivers had been trying to sell the Dairy Holdings stake jointly with four other shareholders, creating a 62.5 per cent controlling stake.

Receivers Mcgrathnicol would not comment on the sale but a spokesperson said an announcement would be made at the end of the week. ‘‘As this has been a shareholder-led sale rather than a receiver-led sale, we would rather comment came from Dairy Holdings.

‘‘We have contacted Alan Pye [20.8 per cent shareholder] to be prepared for media comment by the end of the week.’’

Pye, who already has significant interests in South Canterbury dairy farms, and Tauranga couple Dale and Colin Armer, who own a 16.6 per cent stake in Dairy Holdings, are the only shareholders who have not put their shares up for sale.

Shareholders in Dairy Holdings have pre-emptive rights to buy the holdings being offered for sale by another shareholder.