Archive | Tasman Agriculture

Buyer wants land rotated

South Canterbury farmer Alan Pye has bought six of Tasman Agriculture’s farms in Canterbury for $34.25 million.

Listed farm company Tasman Agriculture, two-thirds owned by Brierley Investments, sold another six farms at auction for $18.1 million last month, and sold one Mid-Canterbury farm and two in North Otago for $12.24 million, for a total $64.59 million on 15 farms.

The Pye family has interests in a number of South Island dairy units, and also has interests in agricultural properties in both Australia and New Zealand. The family operates one of the biggest potato-growing businesses in the two countries.

Mr Pye said today he intended to keep existing dairying operations going, with the same sharemilkers in place — but with a difference: he wants to put an area of each unit in potatoes every year, rotated with a cereal crop then regrassed for dairying. He said this would renew pastures for enhanced dairy production and increase the economic use of the properties.

The six properties he bought cover a total 1744ha. The sale price equates to $19,640/ha and, for the top property, $22,700ha. The farms produced 2.09 million kg of milk solids for the 2000 season.

Tasman Agriculture is now negotiating to manage the dairy operations on the Pyes’ behalf.

Sales at $14,486/ha or $19.10/kg

Tasman Agriculture has sold its remaining two Culverden dairy farms 31% above the values on its last annual balance date, 31 May 2000.

The listed dairy farm owner has used a boom in market values to sell down its portfolio, collecting $121.56 million for 7500ha and 33 farms.

The latest pair went to a dairy-farming syndicate for $7.33 million, at $14,486/ha for 560ha or $19.10/kg of milk solids (based on last year’s production of 384,000kg).

The average of sales in the selldown programme has been 21% above book value.

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.