Kiwifruit companies to amalgamate
The proposed amalgamation of Kerikeri-based Orangewood Limited with a wholly owned subsidiary of Seeka Limited is promising to deliver a stronger service for Northland kiwifruit grower.
In a conditional agreement announced September 14, 2021, Orangewood shareholders are being offered 0.6630 new Seeka shares and $1.35 in cash for every Orangewood share.
Seeka chief executive Michael Franks says the deal will further expand Seeka’s operations in the key Northland growth region and deliver a great service to growers.
“Northland is experiencing strong growth in kiwifruit and avocado orchards, and we are excited by this opportunity to increase our operations and deliver our services to more Northland growers.
“Orangewood shareholders are being offered 0.6630 new Seeka shares and $1.35 in cash for every Orangewood share. It is a $6.55m deal that includes Seeka assuming $1.84m of Orangewood debt,” says Franks.
Orangewood chair Brad Davies says, “The amalgamation of Orangewood, which needs capital investment, with Seeka which has invested in Northland, has available processing capacity and a proven track record of delivering competitive returns to its growers and stakeholders, makes sense from every perspective and we fully recommend it to Orangewood shareholders and growers.”
Seeka chair Fred Hutchings says, “The amalgamation is consistent with Seeka’s heartland growth strategy and builds our Northland business. Seeka expects the amalgamation will be accretive to shareholders upon full integration, with the bigger business generating material efficiencies, synergies and cost savings that will benefit all stakeholders.”
The Boards of Seeka and Orangewood unanimously recommend the amalgamation, with Orangewood shareholders scheduled to vote on the deal on Friday, October 1.