Success shows Affco offer 'fair'

The over-subscription of a 39c-a-share offer for meat processor Affco showed the price was extremely fair, Motueka fishing and food company Talleys said yesterday.

Those accepting the offer - which was made in March and closed last week - were paid yesterday. An independent advisers' report from Deloitte released in April concluded 39c a share was fair but it was below the middle of a 35c to 45c valuation range.

The offer was extended several times to help ensure Talleys was able to increase its share from 40 per cent to 50.01 per cent. In the end, acceptances representing more than 18 per cent of the company were received.

"I think that proves that [the offer was fair]," director Andrew Talley said yesterday. On whether there would be a significant shift in direction, Talley said no big plans were in the wind.

The bid was primarily about making sure Talleys got a return from Affco in line with the effort it put in.

"For the commitment and the level of input and time, we thought that 50 per cent was more commensurate with that."

Talley said conditions for the meat sector remained tough.