New Zealand approves Shanghai Maling Aquarius’ 50% stake purchase in Silver Fern Farms

The government of New Zealand (NZ) has given its approval to Shanghai Maling Aquarius for the purchase of a 50% interest in meat co-operative Silver Fern Farms (SFF) for $261m.

After a vote of support from SFF shareholders, an application was filed with the Overseas Investment Office (OIO) last year for the purchase of the 50% stake. 

New Zealand Minister for Land Information Louise Upston was quoted by Radionz.co.nz as saying: "The OIO recommended that we approve Shanghai Maling's application because it meets the criteria set down in the Overseas Investment Act 2005.

"We are satisfied that the investment will be of substantial and identifiable benefit to New Zealand, which is the test set out in the Act. The investment will put the company in a better financial position and allow it to increase its exports.

"New Zealand shareholders will continue to have 50% ownership of Silver Fern Farms, while benefiting from the injection of funds from the new investor."

The JV is expected to be commence by early next year.

SFF chairman Rob Hewett was quoted by Stuff.co.nz as saying: "Shanghai Maling's financial investment will make Silver Fern Farms the financially strongest company in the New Zealand meat industry with the ability to confidently invest in our business.

"The partnership will help us accelerate our consumer-focused plate to pasture strategy globally, and to grow sustainable value for our shareholders and farmer suppliers over time."