Seeka will buy T&G’s post-harvest facilities in Kerikeri for the packing and storing of avocados, kiwifruit and citrus. T&G will also sell all its 253,000 Zespri shares, worth about $2m, to Seeka.
Seeka recently sold out of its 740,606 shares in Zespri Group after opposing constitutional changes that tie shareholdings to trays of fruit produced.
T&G is also selling about 80 hectares of kiwifruit orchards in and around Kerikeri to Seeka. Hayward, ENZAGold and ENZARed kiwifruit as well as Zespri Sungold varieties are grown. T&G will, however, remain the trademark owner of the kiwifruit brands.
T&G will also have access to fruit grown by Seeka for its existing customers in NZ and overseas.
Seeka said the deal is subject to Overseas Investment Office approval, if required. The completion date for the post-harvest sale is expected to be April 30 and June 30 for the orchard sale.
Seeka chief executive Michael Franks said the company identified the region as a growth area for both avocados and kiwifruit and establishing a post-harvest hub in Northland has been a priority.
“With new avocado developments in the area we are expecting demand for post-harvest facilities to increase.
“We also anticipate increasing demand for kiwifruit as growing conditions have proven very favourable, particularly for gold varieties and with Seeka providing a new, competitive dynamic to the market focusing on quality, price and service,” he said.
T&G’s will focus on core produce categories citrus and berries.
“Our Northland berry and citrus operations are not included in our sale as we intend investing further in these growth categories,” T&G executive general manager Andrew Keane said.
“We have land ready for development and will be investing also in crop protection facilities for our existing operation in Kerikeri. We also hope to employ more people through these investments” he said.
T&G shares, of which BayWa owns 74%, last traded at $3.12 and have dropped 18% over the past year. Seeka shares last traded at $6.63 and are up 29% over the past 12 months. – BusinessDesk
