New Zealand’s Talleys Group is lining up a full takeover of the country’s only listed meat processor Affco.

Talleys has signed a pre-bid agreement to purchase the shares Toocooya Nominees holds in Affco for 37 cents per share. Toocooya owns 23.5% of the meat group.

Talleys already owns 52.8% of Affco (267m shares). According to a statement from Affco, Talleys will now be required to offer for the remaining shares in Affco at the same price. At 37c a share, the company would be valued at NZ$870.3m (US$596.9m).

“The Independent Directors of Affco advise shareholders to consider this development before deciding to trade Affco shares. Our recommendation is that shareholders take no action until the Directors have had time to consider the development further and shareholders have the benefit of the Independent Advisors report and the directors’ assessment of the offer,” the statement said.

In a separate statement, Toocooya said: “Toocooya Nominees Limited has today conditionally agreed to sell 118.5m shares in Affco Holdings Limited to Talley’s Group Limited at 37c per share.

“Toocooya has been a supportive shareholder in Affco over many years, but is not a natural minority shareholder. Rather, Toocooya’s customary investment preference is to hold wholly or majority owned long term investments. Toocooya has therefore taken the opportunity to monetise its Affco investment.”

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