SIL now has 74% of Blue Sky Meats
SOUTHERN Lamb Investments Ltd is the new majority shareholder of Blue Sky Meats.
In March, the company made a full takeover offer for all of the shares in the Southlandbased meat processor.
The offer price was $3 a share, payable in cash, and conditional on the company — which is associated with the company’s chairman Scott O’Donnell and director Andrew Lowe — receiving more than 50% of shares.
A notice to the Unlisted market yesterday said the offer closed at 11.59pm on May 6 and valid acceptances were received for 74.87% of the shares.
The remaining shares were held by NZ Binxi (Oamaru) Foods Ltd (19.84%) and 5.29% by 72 other shareholders.
In the 12 months to June 30, 2021, the business generated a profit of $5.3 million before tax, an increase on the previous year’s $4.2 million.
Profitability has grown by 20% on 2020 (which was a 15month year).
Cashflow has stayed strong at positive $10.7 million, borrowings had decreased by $6.4 million and total shareholders’ equity was up by $2.7 million (10%).
Mr O’Donnell, a prominent Invercargill businessman, has spearheaded the $160 million redevelopment of Invercargill’s CBD, a project which has been cited as having the potential to boost Southland’s real GDP by about $48 million a year. He is involved with H.W. Richardson Group, the family business of his wife Jocelyn.
Mr Lowe is also a wellknown agribusinessman and managing director of Hawkes Baybased Lowe Corporation.
In March 2017, NZ Binxi (Oamaru) Foods, a subsidiary of Chinabased Heilongjiang Binxi Cattle Industry Co, backed out of its $25.4 million takeover of Blue Sky.
Binxi had built its stake in Blue Sky (now known as Blue Sky Pastures) in 2016, becoming the thirdlargest shareholder behind Lowe Corp and H.W. Richardson Group.