Cedenco wants to go for gold

WELLINGTON - Food ingredients manufacturer Cedenco Foods says it is seeking approval from the New Zealand Stock Exchange to disclose certain information to Golden Circle, the Australian concern that wants to buy up to 54 per cent of the company.

Golden Circle wants to conduct a due diligence inspection of the company before it completes a transaction to buy Cedenco shares from two parties, including Brierley Investments, which owns 49 per cent.

In a statement Cedenco said directors believed, as a result of due diligence, relevant information pertaining to Cedenco, which wouldn't have been made available to the market, would be available to Golden Circle.

Cedenco has applied for approval to disclose such information, on the condition that Golden Circle and its affiliates sign an agreed form of confidentiality undertaking. It said it won't release any information until approval is received.

Cedenco said its board understands that Golden Circle is aware that a joint venture agreement, relating to Australian tomato processing operations conducted by Cedenco and Cerebos Pacific's Australian unit, contains "change of control" provisions that could be triggered if the transaction occurs.

"Directors haven't formed a view as to whether or not this information is relevant information," it said.


Brierley previously indicated its desire to exit the stake. Cedenco shares were up 6c to $1.14 from $1.08 on Friday. Cedenco rose 14c on Friday after Golden Circle disclosed it intended to pay between $1.38 and $1.65 a share for the 54 per cent block.

- NZPA