Kiwifruit Companies To Amalgamate

Seeka announces third amalgamation in 2021

 Gisborne growers will be delivered a stronger service with the proposed amalgamation of NZ Fruits and Seeka Limited.

In an agreement announced 10 December 2021, NZ Fruits shareholders are being offered Seeka shares and cash for their NZ Fruits shares. Seeka chief executive Michael Franks says the deal will enable Seeka to service the Gisborne region.

“The amalgamation will deliver a strong service to Gisborne growers,” says Franks.

“Gisborne is experiencing tremendous growth in kiwifruit production, with our industry relying on Gisborne growers to provide quality kiwifruit at the start of each export season. We are excited by the opportunity to invest in the Gisborne region and provide local growers with a world-class service,” says Franks.

“This is a $21.0m investment by Seeka. The consideration will be paid half in cash and half in Seeka shares issued at $5.2455 per share,” says Franks.

NZ Fruits chair Trevor Lupton says: “The amalgamation of NZ Fruits, which needs capital investment for capacity expansion, with Seeka is a positive move for the region. Seeka has a proven track record in expanding their service offering and delivering competitive returns to its growers”.

Seeka chair Fred Hutchings says: “This amalgamation further cements Seeka’s regional growth strategy and complements our existing heartland and Northland business. Seeka expects the amalgamation to be accretive to shareholders upon full integration, with the bigger business generating material efficiencies, synergies and cost savings that will benefit all stakeholders.”

The amalgamation is conditional on Seeka completing due diligence by 17 December 2021, requires NZ Fruits shareholder approval, grower commitment to the transaction and regulatory approvals (if any).

The amalgamation is anticipated to be completed early February 2022.

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