SFL Holdings Ltd said on Wednesday the last condition for its takeover of Synlait Farms Ltd had been satisfied. The offer went unconditional on Tuesday.
SFL Holdings, a subsidiary of Shanghai Pengxin Group Co Ltd, needed approvals from the Chinese Municipal Development & Reform Commission, the Foreign Trade & Economic Relations Commission and the State Administration of Foreign Currency in China.
The offer valued Synlait Farms at $86 million and closed on 29 January with 99.58% acceptance. The balance can be acquired compulsorily. The offer price was $2.10/share plus 0.1957c/share/day from 1 January 2014 until the date it went unconditional, 5 March, which raised the aggregate price to $2.2233/share.
2 of Synlait Group’s founders, Juliet Maclean & John Penno, swapped out of a 3-way bare majority in Synlait Farms to take a combined 26% of the takeover vehicle.
Shanghai Pengxin has a controlling interest in SFL Holdings through NZ Standard Farm Ltd & Milk NZ Holding Ltd. Through Milk NZ Holding, the group bought the Crafar family’s 16 farms from their receiver in 2012.
Shanghai Pengxin separated Synlait Farms from Synlait Ltd in February to create 2 pure-play investments after Synlait Ltd had an unsuccessful capital-raising. Synlait Ltd now holds 49% of Synlait Milk Ltd, owner of the group’s milk manufacturing assets. At the separation point, Mitsui & Co Ltd sold out of Synlait Farms, ending a 5-year relationship.
Earlier story, 20 October 2013: 2 Synlait founders swap out of farm company majority for minority in Pengxin-controlled buyer
Attribution: Company release.