Satara outlines Eastpack merger proposal

Kiwifruit co-operative Satara has received a merger proposal from Bay of Plenty grower Eastpack which would see non-growers excluded from holding shares.

Under the proposal only kiwifruit growers would be eligible to hold shares in the merged company, and Satara would be delisted from the stock exchange's alternative exchange, the NZAX.

Satara shareholders would receive $1.40 per share and growers would be able to reinvest the money in the merged company. Non-growers would have no rights in the new company.

Satara's board has not yet fully considered the proposal and is recommending that shareholders not sell their shares until an independent appraisal is obtained.

A special meeting of Satara shareholders will be held to consider discuss the proposal.

Shares in Satara were unchanged at $1.10 this morning.

- NZPA