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- Release Date: 29/11/13 17:09
- Summary: ASSET: SEK: Seeka signs MOU and enters new dairy processing venture
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SEK
29/11/2013 15:09
ASSET
REL: 1509 HRS Seeka Kiwifruit Industries Limited
ASSET: SEK: Seeka signs MOU and enters new dairy processing venture
Seeka signs Waimapu Memorandum of Understanding and enters new dairy
processing venture
Seeka Kiwifruit Industries advises that it has agreed terms with
international investors that will see it form a new dairy processing company
to be based at Seeka's Waimapu Site.
Under the terms of the MOU, Seeka will sell Waimapu into a new proposed
company, Seeka Dairy Ventures Limited, at its valuation of $4.5m in exchange
for 50% of that new company, and international investors will acquire 50% of
the new company for $4.5 million. A redevelopment project will see a portion
of the site converted into a processing unit targeted at the dairy sector
with the majority of the first years planned throughput already committed.
The venture will require resource consent - however, once obtained and the
development completed, the project is expected to see 26 full time new
positions from the planned 1 June 2014 commencement date.
Michael Franks, Seeka Chief Executive, said that the deal was a positive
development for Seeka. It transforms a site no longer needed for kiwifruit
and converts it into a profitable processing business. Coolstores at the site
not immediately needed by the venture will remain available to Seeka for the
immediate future if they are needed for kiwifruit. Future plans for the new
venture will see growth in profits and employment over the future. Our
immediate focus is to settle the deal, get the equipment ordered and
constructed and get underway. We are delighted with our partners and how this
venture has come together. It is a very positive development.
Ends
For further information please contact Seeka Kiwifruit Industries Limited:
Michael Franks
Chief Executive
021356516
Stuart McKinstry
Chief Financial Officer
0212215583
End CA:00244532 For:SEK Type:ASSET Time:2013-11-29 15:09:18
