Dawn Meats ‘linked With Majority Bid For New Zealand’s Alliance Group’

Credit: Mironov Vladimir/Shutterstock

Dawn Meats is reportedly seeking to get a mostly liking successful Alliance Group, nan nutrient cooperative successful New Zealand.

Ireland-based nutrient processor Dawn Meats declined to remark connected a study from nan Irish Times, which said nan institution had emerged arsenic nan starring bidder to get shares successful nan group up of nan Saudi Agricultural and Livestock Investment Company (Salic).

Sources for nan Irish Times suggested Dawn Meats’ connection is taxable to a shareholder ballot astatine nan farmer-owned co-op. The publication added that it ‘understands nan bid involves a payment’ of NZ$270m ($159m) for a 70% liking successful Alliance Group.

A gathering of nan co-op’s members is slated for 12 August to talk nan offer, nan sources added.

Just Food has approached nan Alliance Group, which generated gross past twelvemonth of NZ$1.8bn but posted a nonaccomplishment aft taxation of NZ$95.8m, to corroborate nan speculated attack by family-owned Dawn Meats.

County Waterford-based Dawn Meats, which trades arsenic Dunbia successful nan UK, is simply a processor of lamb and beef pinch an yearly turnover of €3bn ($3.4bn), according to its website. The business operates 11 accommodation successful Ireland and 13 successful nan UK supplying nan unit and foodservice channels, arsenic does nan Alliance Group.

Dawn Meats said it does not remark connected marketplace speculation erstwhile contacted by Just Food. Salic, which is owned by Saudi Arabia’s Public Investment Fund, had not responded to a petition for remark astatine nan clip of writing.

Meanwhile, Alliance Group confirmed successful its yearly results announcement successful November that nan business had hired Craigs Investment Partners to “explore outer capital-raising options”.

Chairman Mark Wynne said successful that aforesaid statement: “While we are astatine nan very early stages of nan process, we’ve seen encouraging liking from some world and home parties but for reasons of commercialized sensitivity, we will not remark connected circumstantial opportunities.

“We will beryllium assessing immoderate outer opportunities based connected strategical fit, worth and expected benefits for nan institution and our shareholders earlier making immoderate decisions. Ultimately, nan last determination will remainder pinch our husbandman shareholders.”

In 2023, Alliance Group besides posted an after-tax nonaccomplishment amounting to NZ$70.1m based connected a turnover of NZ$2bn.

The co-op besides revealed successful its 2024 financial study that it had incurred costs, including those connected pinch nan closure of a section facility, which gave emergence to an underlying nonaccomplishment aft taxation of NZ$47.6m for that year.

“The nonaccomplishment includes one-off post-tax costs of NZ$48.2m successful narration to business restructuring costs and different one-off adjustments, including nan costs associated pinch works rationalisation and redundancies pursuing nan closure of nan company’s Smithfield works successful Timaru,” nan institution said.

Commenting alongside chair Wynne, CEO Willie Wiese said that “global markets remained exceptionally challenging pinch prices remaining weaker arsenic consumers continued to support a tight rein connected spending”.

Wiese added income and volumes “nearly halved” successful its largest marketplace of China. However, request for beef successful nan US was robust driven by a drought successful that country.

In an update provided successful December pursuing Alliance Group’s yearly wide meeting, nan co-op said it had “turned a area connected a challenging 2 years pursuing a broad re-set complete nan past 18 months and is forecasting a return to profitability”.

Wynne added: “Alliance has taken decisive steps to re-set nan business and position nan institution for early occurrence aft a reliable play for nan world reddish nutrient sector, successful peculiar for lamb, our largest merchandise group.

“The board’s penchant is for Alliance to stay a 100% farmer-owned co-operative. However, raising nan desired superior from farmer-shareholders now looks highly difficult. We are early successful nan outer superior raise process being led by Craigs Investment Partners.”