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- Release Date: 04/03/14 13:57
- Summary: ASSET: SEK: Seeka Updates on Waimapu Dairy Venture
- Price Sensitive: No
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SEK
04/03/2014 11:57
ASSET
REL: 1157 HRS Seeka Kiwifruit Industries Limited
ASSET: SEK: Seeka Updates on Waimapu Dairy Venture
On 29 November 2013, Seeka advised the market that it had signed a Memorandum
of Understanding ("MOU") to enter into a new dairy packaging joint venture to
be based at its Waimapu site. Under the terms of that MOU, Seeka was to sell
its Waimapu site into a new proposed company, Seeka Dairy Ventures Limited
("SDV"), at its valuation of $4.5m in exchange for 50% of SDV, and
international investors would acquire 50% of SDV for $4.5 million. The
business of SDV was to undertake packaging and handling of dairy products for
those International Investors.
Seeka advises that since that market announcement, it has been involved in
detailed negotiations and, whilst negotiations have yet to be finalised, the
deal as agreed in the MOU, and outlined in the market announcement, will now
not take place.
Further negotiations between Seeka and the international investors may result
in the investors leasing some, or all, of the Waimapu site to undertake a
dairy packaging business, but this will be without Seeka investment or
shareholding. Seeka will advise the market should this eventuate.
ENDS
For further information please contact Seeka Kiwifruit Industries Limited:
Michael Franks
Chief Executive
021356516
Stuart McKinstry
Chief Financial Officer
0212215583
End CA:00247792 For:SEK Type:ASSET Time:2014-03-04 11:57:48
