NZ: Sale of poultry firm Tegel Foods approved
The sale of New Zealand poultry producer Tegel Foods to Affinity Equity Partners has been approved by the Overseas Investment Office.
In a leveraged buyout worth about NZ$600 million, Australia's Pacific Equity Partners is selling a 43% stake in Tegel and ANZ bank and related entities are flicking a 30.37% stake as Affinity buys 100% of Tegel's parent company NZ Poultry Enterprises through a subsidiary, the Singapore incorporated Claris Investments.
Affinity's purchase of Tegel, is backed by financing from a syndicate of banks including ASB's parent Commonwealth Bank of Australia, Westpac, Macquarie Bank and Rabobank.
Pacific Equity Partners bought Tegel from HJ Heinz five years ago for $250m. Tegel's parent reported a tax paid profit of $22.6m for the year to April 25 2010 on revenue of $401.7m. The company has interest bearing debt of $319.2m.
Source: NZ Herald
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