Free Subscription

  • Access daily briefings and unlimited news articles


Only $34.95 per year
  • Quarterly magazine and digital
  • Indepth executive interviews
  • Unlimited news and insights
  • Expert opinion and analysis

Tegel talks continue

tegelTegel Foods has reportedly met with potential trade buyers as majority-owner, Affinity Equity Partners, mulls whether to seek a trade sale or initial public offering.

Fairfax Media reports Thailand’s Charoen Pokphand Group and global meat processing giant, JBS, are among those talking to Tegel, which is New Zealand’s largest poultry business and is understood to be worth around $NZ900 million.

Sources told Fairfax Affinity was hopeful of finding a buyer before the end of the calendar year but stressed there was no formal sale process underway.

Affinity bought Tegel from Pacific Equity Partners in 2011 for a reported $NZ600 million ($A547.30 million), and since then has divested the company’s property, including the sale of two long lease chicken processing plants to buyers including Wellington-based Caniwi Capital for $NZ60m in July 2013.

Tegel reported a profit of $NZ14.1m on sales of $NZ517.2m in the year ended April 27, 2014, the last accounts filed by holding company Ross Group Holdings.

The majority of New Zealand’s chicken industry is owned by private equity investors after Inghams Enterprises (NZ), the country’s second largest poultry producer, was sold, along with its Australian parent, Ingham Enterprises, to TPG for $A880m in June 2013.

You have 3 free articles.