Share
- Release Date: 10/03/14 10:57
- Summary: ASSET: SEK: Seeka signs agreement to sell its shares in OPAC
- Price Sensitive: No
- Download Document 2.38KB
SEK
10/03/2014 08:57
ASSET
REL: 0857 HRS Seeka Kiwifruit Industries Limited
ASSET: SEK: Seeka signs agreement to sell its shares in OPAC
SEEKA SIGNS AGREEMENT TO SELL ITS SHARES IN OPOTIKI PACKING AND COOL STORAGE
LIMITED
Seeka advises that it has entered into an agreement to accept an offer from
the Board of Opotiki Packing and Cool Storage Limited ("OPAC") to buy back
all of Seeka's shares in the company.
Under the terms of the agreement, OPAC has agreed to acquire all of Seeka's
858,224 shares in the Company by way of a targeted buyback. The agreed sale
price of $3,226,992 represents $3.76 per share.
The buy-back is conditional on OPAC's shareholder's approving certain changes
to OPAC's constitution to facilitate the buyback and approving the buyback of
Seeka's OPAC shares, at a meeting of OPAC's shareholders to be called by
OPAC's Board within the next few weeks. Settlement is expected to occur
three business days after OPAC shareholder approval is obtained.
Seeka has been a shareholder in OPAC since 2005, when it purchased a 20%
shareholding in the Company. At that time, Seeka's intention was to increase
its shareholding to 100% and to operationally and strategically align the two
companies for the benefit of the shareholders of both Seeka and OPAC. Seeka
has held its cornerstone stake since its investment and has supported the
company through Psa-V events in both Italy and New Zealand.
In recent years, OPAC's operational and strategic plan has diverged from that
of Seeka's to the extent where Seeka no longer considers that it obtains
value from its shareholding, and Seeka also consider that it cannot add
further value to OPAC, its shareholders or growers. In the absence of these
benefits, Seeka has made the decision to divest its interest and accept an
offer from OPAC to buy-back its shareholding.
Michael Franks, Seeka Chief Executive, said
"This deal is a positive development for both Seeka and OPAC. It allows both
companies to move on with their respective strategies and businesses. The
relationship between the companies will have a different foundation but
continue none-the-less. We wish OPAC's Board, shareholders and growers well."
ENDS
For further information please contact Seeka Kiwifruit Industries Limited:
Michael Franks
Chief Executive
021356516
Stuart McKinstry
Chief Financial Officer
0212215583
End CA:00247991 For:SEK Type:ASSET Time:2014-03-10 08:57:43
