South Canterbury farmer bought some of the selloff last year
South Canterbury farmer Alan Pye spent $34.5 million buying six farms from Tasman Agriculture last October (Pye family buys six farms). Now he wants to take over the whole company.
Dairy Holdings Ltd, headed by Mr Pye and Timaru accountant Allan Hubbard, said it wanted to enter an agreement to buy Brierley Investments’ 66.1% of Tasman Agriculture, which would be conditional on Australian Foreign Investment Review Board approval and Tasman Agriculture making a distribution of not less than $107 million to shareholders before the transaction settled.
BIL would get 66.1% of the distribution, which would be deducted from the purchase price.
The transaction price of $117.03 million represents $1.68/share. Settlement is scheduled for 15 June.
BIL would get $188 million from the sale and its share of the distribution.
Tasman Agriculture has made a concerted effort to sell its New Zealand farms, quitting 36 of them, covering 7938ha, for $128.23 million. All but $4.65 million will be settled on 1 June, with the remainder to settle one year later.
The company retains 28 New Zealand farms covering 6693ha, and two conversion properties covering 709ha. Several are on the market.
Tasman Agriculture’s board, dominated by Brierley interests, had been pondering a share buyback or distribution before the Pye bid. This deal would satisfy the Brierley exit desire and keep a farm portfolio in the hands of farming interests.