Article: Report backs PGG Wrightson offer; SILVER FERN FARMS

PGG Wrightson's (PGGW) offer for 50% of Silver Fern Farms (SFF) is within a $205-$225 million valuation range and does not disadvantage existing farmer-shareholders, an independent report says.

Listed Christchurch rural services group PGGW is offering $220m for the 50% stake, near the top of the range provided by independent appraiser Grant Samuel. The report, out yesterday, says having a committed partner "has the potential to bring significant benefits to both" PGGW and SFF, the nation's largest meat processor with annual turnover of $1.8 billion - nearly twice that of rivals Alliance or AFFCO Holdings.

The report said if the proposed transaction is implemented the Dunedin meat co- ...

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