Italian gold to grow bottom line

Kiwifruit supplier and orchard manager Seeka Kiwifruit Industries is taking a 20 per cent cornerstone shareholding in Opotiki Packing and Coolstorage (OPAC).

As part of the deal, OPAC will distribute its Seeka shareholding - it is Seeka's second-largest investor - to shareholders.

The deal follows moves by Seeka to amalgamate with packers Eleos and the combined group will handle more than a quarter of New Zealand's kiwifruit volume.

OPAC chief executive Craig Thompson said the move would bring efficiency gains including leveraging better commercial terms in all dealings, supply alliances, rationalisation of supply chain costs, and access to the post harvest and corporate support functions.

Seeka managing director Tony de Farias said OPAC's overseas investments (particularly in gold orchards in Italy) were a significant asset that would generate new cashflows.

Supply arrangements for the combined group will be rolled into a new unit, Integrated Fruit Supply and Logistics, which will move towards forming a partnership with kiwifruit marketer Zespri.

Last month, NZAX-listed Seeka said a bumper season had led to an unaudited after-tax profit of $4.5 million for the six months ended September 30. This is up from $3.9 million for the same period last year.