GPG to sell shareholding in Turners & Growers

RNS Number : 8606R

Guinness Peat Group PLC

10 November 2011

 



GUINNESS PEAT GROUP PLC

("GPG")

ANNOUNCEMENT

GPG to sell shareholding in Turners & Growers

GPG made the following announcement today on the Australian Securities Exchange and the New Zealand Main Market.

Chris Healy

Company Secretary

Guinness Peat Group plc

Tel: [phone]

10 November 2011

10 November 2011

GUINNESS PEAT GROUP PLC ("GPG")

GPG to sell shareholding in Turners & Growers

Guinness Peat Group plc (NZX code: GPG) confirmed today that it had entered into a lock-up agreement with German company BayWa Aktiengesellschaft (BayWa) for GPG's 74.25 million shares, representing a 63.46% shareholding, in Turners & Growers Limited (NZX code: TUR). The offer price under BayWa's proposed Takeover Offer will be $1.85 per share. The offer will be subject to certain conditions, including approval from the Overseas Investment Office and the German Federal Cartel Office. The offer will also be conditional on BayWa receiving acceptances in respect of shares in Turners & Growers that confer more than 50% of the voting rights in the Company. This condition will be satisfied by GPG accepting the offer as per the lock-up agreement it has entered into with BayWa.

BayWa is an international trading and services company in its core segments of Agriculture, Building Materials and Energy. In the 2010 financial year, the company generated EBIT of almost EUR 130 million from revenue of approximately EUR 8 billion with its workforce of more than 16,000 employees.  In its Fruit Business Unit, the BayWa Group is a leading supplier of German premium fresh fruit to food retailers and the largest supplier of pipfruit from organic production.

Anthony Eisen, the Chief Investment Officer of GPG, said that "GPG supports BayWa's proposed offer and believes that it is attractive.  GPG welcomes the opportunity for the offer to be presented to all shareholders of Turners & Growers.  BayWa is a highly reputable company with a strong history in trading agricultural products. I expect that BayWa's expertise will assist Turners & Growers continue its successful expansion into international markets."

In February 2011, GPG announced its strategy to undertake an orderly realisation of GPG's investment portfolio over time.  Rob Campbell, the Chairman of GPG, stated that "the proposed divestment of our shareholding in Turners & Growers is one of the strategic initiatives that GPG has commenced and we will keep the market informed as we continue to progress down this path."

Media and Investor Enquiries

Anthony Eisen                                            Chris Healy

Chief Investment Officer                              Company Secretary

[phone]                                      [phone]

 

END

 

 

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