KEY POINTS:
Turners & Growers has made swift progress in its proposed takeover of Kerikeri-based fruit producer Kerifresh after months of delay following a Takeovers Panel investigation.
The NZX-listed fruit and produce exporter suspended a $2-a-share takeover offer for Kerifresh in October after the Takeovers Panel found a number of parties had breached the Takeovers Code.
On Wednesday Turners successfully bid for 1.6 million shares - 21.2 per cent of Kerifresh stock - in an auction called for by the panel to deal with shares purchased in breach of the code.
Chairman Tony Gibbs said pre-bid agreements had been secured on Wednesday evening, taking Turners' holding to 53 per cent.
The winning auction bid was $2.10 and the company was hoping soon to issue an offer document for the whole company at the same price.
"We're quite happy to own the whole company; on the other hand, if people don't want to sell, no one's holding a gun to their heads," Gibbs said.
There were no plans for wholesale redundancies, he said.
"Kerifresh and Turners & Growers will work together, and Turners & Growers' view is it wants to expand its operations in Northland, not contract them."
Kerifresh had not performed well, but Turners & Growers could make use of synergy benefits, he added.
In the year ending December 31, 2006 Kerifresh achieved a revenue of $21.9 million but a net loss of $989,000, while Turners & Growers posted a revenue of $550.3 million and profit of $17 million for the same period.
Kerifresh is the country's largest lemon grower, and Turners & Growers had export teams around the world, Gibbs said. "We've already got a huge orchard up there. There'll be things we can share. We've got transport, we've got bins, we've got packing houses, we've got a market system."
In November Turners & Growers filed proceedings in the High Court against shareholders in Kerifresh in respect of breaches of the Takeovers Code by certain shareholders and their associates.
It is seeking costs and damages suffered when it suspended its takeover offer, and forfeiture of shares.
Gibbs this week described the court proceedings as being "still on foot".
THE PLAYERS
Turners & Growers
* Distributor, marketer and exporter of fresh produce.
* Fruit and vegetable importer.
* Cool store and transport operator.
* Revenue of $550.3 million.
Kerifresh
* Among the largest citrus fruit producers in the country.
* Main crops of lemons, mandarins and kiwifruit.
* Orchards in Kerikeri, procurement from other regions.
* Revenue of $21.9 million.
