Westland Dairy has signed a conditional agreement for its sale to Hong Kong Jingang Trade Holding Co., a wholly-owned subsidiary of China’s largest dairy group Yili. The said deal has been agreed for NZD588m (US$403.7m).
New Zealand co-op’s chairman Pete Morrison said while speaking about its proposed acquisition of Westland, “The board believes that the proposed transaction represents the best available outcome for our shareholders, and has the unanimous support of the board. The acquisition price represents an attractive price to the Westland shares’ nominal value. Westland will seek shareholder approval for the proposed transaction at a special shareholder meeting which is expected to be held in early July.”
Morrison also added, “Under the proposed transaction our shareholder farmers who are existing suppliers upon the implementation of the scheme will receive the benefit of Westland’s commitment to collect milk and pay a competitive payout of a minimum of the Fonterra Farm Gate Milk Price for ten seasons from the season commencing 1 August, 2019.”
Westland’s proposed acquisition by Yili requires the approval of 75 percent or more of the votes of shareholders, and more than 50 percent of the votes of all shareholders entitled to vote.