7 Sep 2008

Silver Fern Farms - PGG Wrightson vote

9:34 pm on 7 September 2008

The country's biggest meat company Silver Fern Farms will find out on Monday whether its proposal to join forces with the rural servicing giant, PGG Wrightson, will proceed.

The two companies are proposing a 50-50 partnership, with PGW offering $220 million for its half share of the business.

To go any further, the deal has to have the blessing of 75% of Silver Fern's farmer shareholders who vote on the plan.

Silver Fern says there's been a very big response by shareholders who voted by post, fax or internet. The deadline for those votes was Saturday.

Those attending Monday morning's special general meeting in Dunedin will cast their votes there.

Under the partnership proposal, PGW will become the stock procurement arm of Silver Fern.

Both companies say the partnership should help rather than hinder any future moves to consolidate the meat industry, including a much debted merger with Silver Fern's rival co-operative, the Alliance Group.