Rural / Country

Synlait Farms takeover approved

12:53 pm on 4 February 2014

The takeover of Synlait Farms in Canterbury by Shanghai Pengxin, a Chinese company, has been approved by the Overseas Investment Office.

The owners of 99.6 percent of shares gave the deal their support - believed to be the highest acceptance of any takeover in New Zealand since the Takeovers Code was introduced in 2000.

The deal between Shanghai Pengxin and Synlait Farms remains conditional until Chinese regulators give their approval for the transfer of funds out of China, but Synlait Farms says that should be just procedural and there is likely to be a quick decision by Beijing.

Shareholders will be paid $2.10 per share and the company will now compulsorily acquire the remaining 0.4 percent of the shares belonging to people who did not support the deal.

Shanghai Pengxin will now have a stake of 74 percent in 13 Synlait Farms properties south-west of Christchurch, to add to its 16 North Island farms formerly owned by the Crafar family and now managed by Landcorp.