New Zealand farmer-shareholders in favour of Dawn Meats partnership
87% of farmer-shareholders of Alliance have voted in favour of a Dawn Meats partnership.
Farmer-shareholders of the New Zealand meat processor Alliance Group have voted in favour of the strategic partnership with Dawn Meats.
Alliance is New Zealand’s largest processor and exporter of sheep meat, and a key producer of pasture-fed premium beef, with its quality produce exported to more than 65 countries. Owned by about 4,300 shareholders, the company operates six processing plants in New Zealand.
Dawn Meats has welcomed the decision of the farmer-shareholders who voted in favour of the proposed €132m strategic partnership.
This result means Dawn Meats will now proceed to acquire a 65% shareholding in Alliance Group, with farmer-shareholders retaining a 35% stake.
A total of 2,675 shareholders voted, representing over 92 million shares or more than 88% of all shares on issue. Of these, more than 87% voted in favour of the proposal, meeting the threshold required under the Takeovers Code.
Dawn Meats chief executive Niall Browne said: “We are pleased and excited by the outcome of the vote by Alliance’s farmer-shareholders and we now look forward to maximising the potential of the new opportunities this strategic partnership will unlock in the future for both Dawn Meats and Alliance.
“Dawn Meats already has a strong operations network in Ireland, the UK and in the EU. Having the ability to now grow in partnership with some of New Zealand’s leading farmers and create a year-round supply for our customers between the northern and southern hemispheres is a fantastic opportunity and one our customers are already responding to.”
“We believe this partnership will create a dynamic industry competitor with a unique combination of customer relationships, resources, skills, routes to market and industry knowledge, giving both Dawn Meats and Alliance a powerful competitive edge, locally and globally,” Mr Browne added.
Alliance Group intends to invest about NZ$200m (€98.5m) to be used to reduce the group’s short-term working capital facility, with the balance directed toward accelerating the board’s strategic capital expenditure programme.
Farmer-shareholders will also benefit from distributions of up to NZ$20m in both the current financial year and next financial year. In this financial year, 45% will be paid as a dividend and 55% as a supply-based rebate.
In the next financial year, 75% will be paid as a rebate and 25% retained as earnings. Rebate payments will be calculated on a three-year rolling average of supply and capped at the current shareholding.
Alliance Group chair Mark Wynne said the result demonstrated strong farmer confidence in the company’s future direction.
“Our farmer-shareholders have given a clear mandate for Alliance to move forward in partnership with Dawn Meats. This is a vote of trust in our people, our operations and our vision… By combining Alliance’s lamb expertise and global reach with Dawn Meats’ strength in beef and market access across Europe and the UK, we can unlock significant commercial and operational synergies,” Mr Wynne said.
Following the announcement of the investments into the company and farmer-shareholders, Mr Wynne said: "This outcome provides Alliance with a strong foundation for the future… We are now well-positioned to thrive alongside a complementary partner like Dawn. Together, we will deliver enduring profitability, significant global opportunities and capture greater value for our farmer-shareholders.”
