Graeme Hart mulling sale of Dairy Foods

Burns Philp principal Graeme Hart is mulling the sale of Dairy Foods, according to a report in today's National Business Review.

The business weekly said talk of a sale had increased after Dairy Foods reported a 3.6 per cent boost in operating profits to $37.6 million during the December half.

It quoted sources saying the company, which owns the Anchor and Swiss Main Calci-Yum brands was geared for sale following Mr Hart's aggressive restructuring.

The billionaire bought Dairy Foods for $250m in 2002 through his investment company Rank Corp and there was talk when Burns Philp bought Goodman Fielder in 2003 that Mr Hart would fold the Dairy Foods brands into the enlarged company to fulfill his aim of global scale food company.

NBR quoted financial sources as saying a market float or trade sale for the company that has 40 per cent of the local dairy market, would be attractive.

Rank raised $150m in capital notes in 2002 to help fund the purchase of Dairy Foods and the notes could be convertible into ordinary Dairy Foods shares if a float was contemplated.

Mr Hart, who was on a school camp in Northland with one of his children, was not available to comment.

- NZPA