2 Dec 2010

Kiwfruit company merger cancelled

6:56 am on 2 December 2010

A planned merger between Satar and EastPack has been cancelled due to the uncertainty around the outbreak of the PSA disease that kills vines.

Satara shares were placed on a trading halt on Wednesday morning, ahead of an announcement later in the day.

Satara says EastPack pulled out because of the commercial uncertainty surrounding the outbreak and the impact on the availability of funding to pay for the merger.

The company says it has a strong balance sheet going forward and it believes the impact of PSA on its 2011 crop supply will be minimal.