SFF raises $5m up front

Just $5 million of the $22.2 million in new equity raised by Silver Fern Farms through its recent rights offer has been paid up front.

The balance would be paid by farmers over the next three years from deductions from the supply of prime stock.

Chairman Eoin Garden said that while he was happy with the new capital, he said equally important was the 74 per cent of rebate and supplier investment shares that were eligible to be exchanged, and which were swapped for the new class of ordinary share.

"It takes away the redemption risk and gives us flexibility going forward."

The exchange offer and rights issue attracted 5700 shareholders holding 42.6 million shares which translated to 74 per cent of the 57.5 million shares eligible for exchange being swapped for the new ordinary shares.

SFF has also benefited from the sale last Friday of 10 million shares in PGG Wrightson for between 73c and 79c, the shares gained as part of a settlement with the rural servicing company for failing to complete a partnership last year.

Garden said the proceeds of the sale of shares, which were valued on the SFF books at a similar price to which they were sold, would be used to reduce debt.

- OTAGO DAILY TIMES