中国伊利同意以4.04亿美元收购新西兰的WESTLAND MILK
中国伊利同意以4.04亿美元收购新西兰的WESTLAND MILK
CHINA’S YILI AGREES TO BUY NZ’S WESTLAND MILK FOR US$404M
Hongkong Jingang Trade Holding Co., Limited (“Jingang”), a wholly-owned subsidiary of Inner Mongolia Yili Industrial Group (Yili), the largest dairy company in Asia (with a 22 percent market share), has agreed to fully acquire New Zealand’s Westland Milk for NZ$588 million (US$404 million).
Westland is the second largest dairy company in New Zealand after Fonterra, accounting for up to approximately 4 percent of the raw milk supplied in the country, and sells its products to more than 40 countries around the world.
But because of Westland’s inability to offer competitive milk prices, a strategic review was conducted by the Board, which when finished, launched Project Horizon, a process to explore future capital and ownership options for the company that would provide a long-term solution to its shareholders, said the company in a statement.
The Board engaged with more than 35 interested parties looking to either fully acquire, merge, or invest in Westland. This group was narrowed down to a short list of parties that participated in detailed financial, legal, and operational due diligence.
“Under the proposed transaction our shareholder farmers who are existing suppliers upon the implementation of the scheme will receive the benefit of Westland’s (under the new ownership) commitment (which is guaranteed by Jingang) to collect milk and pay a competitive payout of a minimum of the Fonterra Farm Gate Milk Price for 10 seasons from the season commencing 1 August 2019,” said chairman Pete Morrison.
Yili has had a presence in New Zealand since 2013, when it acquired South Catebury-based Oceania. In the years since, Yili had invested RMB 3 billion (US$442 million) to establish UHT, milk powder, and infant formula production lines for Oceania.
“The board believes that the proposed transaction represents the best available outcome for our shareholders, and has the unanimous support of the Board,” said Morrison. “The acquisition price represents an attractive price to the Westland shares’ nominal value. Westland will seek shareholder approval for the proposed transaction at a special shareholder meeting which is expected to be held in early July 2019.”
A Strong NZ Sector
This is the second large-scale deal in as many weeks in New Zealand dairy. In mid-March, Milltrust International and Milltrust Agricultural Investments (MAI) announced the acquisition of a 24.9 percent stake in Waitonui Milltrust Agricultural Holdings (WMAH), a newly launched entity owned in partnership with a consortium of New Zealand investors.
The announcement of the WMAH acquisition represents the consolidation of a string of investments made over the past six months that together culminate in the formation of a large-scale, integrated dairy and beef farming enterprise. With assets valued at more than $125 million, WMAH manages a portfolio of farms and related assets totaling 3,500 hectares across both the North Island and South Island. Combined, the farms milk 10,000 cows and produce more than four million kilograms of milk per year, making WMAH one of the largest suppliers to Fonterra, the top dairy processor in New Zealand.
Despite the difficulties faced by Westland, New Zealand’s production model, and its close geographic proximity to high-demand Asian markets, saw the country offering its farmers the highest prices for milk in the world, as of July of last year.
As the calendar turned to 2019, China was ranked first in dairy imports, accounting for 26 percent of global shipments. Of this volume, New Zealand accounts for 40 percent, significantly outpacing all other suppliers. Concurrently, a new report issued by the Global Dairy Trade revealed that the first dairy auction of 2019 reflected the third consecutive increase for global dairy prices, rising another 2.8 percent.
The deal for Westland, however, must still overcome certain hurdles before it can close, requiring an approval vote from a minimum 75 percent of shareholders (in each asset class), and more than 50 percent of all shareholders entitled to vote. It must also gain approval from the High Court in accordance with section 236 of the New Zealand Companies Act, approval under the Overseas Investment Act, among other customary conditions.
If approved, Yili CEO Zhang said that it would spark an immediate competitive milk price for Westland’s farmers, and an immediate sharing of expertise gained over the years by each of the companies.
“We believe we are offering farmers shareholders a stronger financial future, and greater access to international markets,” said Zhang. “In return, we are asking to become the custodians of one of New Zealand’s most trusted brands – Westland Milk – with all of the knowledge, history, and expertise that comes along with that.”
-Lynda Kiernan
发布时间：2019-4-12|责任编辑：谢金丽