SCF receivers sell Dairy Holdings stake

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The receivers for South Canterbury Finance have sold its 33.6% in stake in Dairy Holdings to existing New Zealand shareholders including NBR Rich Listers Colin Armer and Alan Pye.

Friday, February 3rd 2012, 10:53AM

by Niko Kloeten

The receivers, Kerryn Downey and William Black of McGrathNicol, said US shareholders who held 25% of the shares in Dairy Holdings, followed a parallel process and also sold their shares to the existing NZ shareholders.

Companies Office records show both Armer and Pye have updated their shareholdings.

The sale ends a feud between Armer and the receivers, which saw Armer and his wife Dale file a High Court claim alleging the receivers had been trying to blackmail them into selling their stake.

The transaction values Dairy Holdings in excess of $535 million, enterprise value. SCF will receive $56.4 million from the sale of its 33.6% interest.

The Dairy Holdings Group is the largest corporate owner of dairy farms in New Zealand. The group owns 58 dairy farms and owns and leases a further 15 grazing blocks, all in the South Island, covering a total land area of 18,000 hectares.

In the 2010/11 season, the group produced 14.1 million kg of milk solids from approximately 43,400 milking cows.

Downey said, "This has been a lengthy and robust sale process that commenced in December 2010. We have worked closely with other shareholders and our sale advisors and are delighted that the sale has been to NZ buyers and will not require OIO approval. This is a good result for SCF, the Crown and the Trustee."

The receivers of SCF were advised by First NZ Capital, working with Murray & Company acting for the US-based shareholders.

Niko Kloeten can be contacted at niko@goodreturns.co.nz

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