Talley’s Eyes Meat Processor Affco

Talley’s Group is planning to acquire meat processor Affco, which has agreed to buy out its fellow shareholder Toocooya Nominees.

The New Zealand-based food producer has also increased its stake in Affco from 53% to 76%.

Talley’s has indicated it plans to offer 37 cents a share, the same price agreed with Toocooya, valuing Affco at NZ$187m.

In 2006 Talley’s boosted its stake to more than 50% in Affco, offering 39 cents when an independent valuation was for a price between 35 cents and 45 cents.

Last month Affco reported a 4% increase in interim profit to a net after-tax profit of NZ$15.9m in the six months ended 31 March.