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Talley family lifts Affco stake to 85 percent

The South Island-based Talley family has increased its stake in Affco Holdings to around 85 percent and announced its takeover offer for the meat company is unconditional.Following that announcement, Affco's independent directors said they had reviewed th

NZPA
Tue, 21 Sep 2010

The South Island-based Talley family has increased its stake in Affco Holdings to around 85 percent and announced its takeover offer for the meat company is unconditional.

Following that announcement, Affco's independent directors said they had reviewed their recommendations and intended to accept the offer for their own shares, and recommended all shareholders accept the takeover offer.

The commitment by Talleys to declare the offer unconditional improved the terms of payment and meant all shareholders would be paid within seven days. All shareholders who accepted today would be paid in September, the independent Affco directors said.

Previously they had said that shareholders who needed a dividend in the short to medium term should accept the 37c a share offer.

But if shareholders had confidence in a company that had indicated it would in the short to medium term invest strongly in its core operations as a means to future success, they should not accept the offer.

At that time the independent directors had not intended to accept the Talley offer, but today they said circumstances had changed.

Given the high level of acceptance so far, any remaining shares in Affco not held by the Talley family would likely be held by a relatively small number of Affco shareholders and be significantly less liquid in general trading than before the offer, the independent directors said.

As dividends were not likely to be paid given the capital requirements in the meat industry for the foreseeable future the significantly reduced liquidity was of critical importance.

NZPA
Tue, 21 Sep 2010
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Talley family lifts Affco stake to 85 percent
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