Famer owners at New Zealand meat producers co-op Alliance Group have voted in favour of a proposed NZ$270m joint venture investment by Irish company Dawn Meats.
Under the deal, Dawn Meats, one of Europe’s leading red meat processors, will acquire a 65% shareholding in the co-op, with farmer-shareholders retaining a 35% stake.
The vote comes despite a campaign by some farmer owners to avoid the part-demutualisation by seeking new financing sources.
A total of 2,675 shareholders voted, representing 92,495,558 shares or more than 88% of all shares on issue. Of these, more than 87% voted in favour of the proposal, meeting the threshold required under the Takeovers Code.
“Our farmer-shareholders have given a clear mandate for Alliance to move forward in partnership with Dawn Meats,” said co-op chair Mark Wynne. “This is a vote of trust in our people, our operations and our vision.
“We’re really excited about the potential for this partnership and what the future holds for Alliance and Dawn.
“This essential investment will strengthen our financial position, enhance our operational capability and enable us to capture more value in market for our farmers and the country.
“Importantly, the agreement also preserves farmer ownership, with a continuing 35% shareholding and strong governance rights.”
Wynne said the co-op had made a comprehensive two-year effort to reset and re-capitalise the business.“The board explored every option to secure Alliance’s future,” he added. The Dawn Meats proposal stood out as the best strategic and financial path forward, a view confirmed by independent adviser Northington Partners.
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“By combining Alliance’s lamb expertise and global reach with Dawn Meats’ strength in beef and market access across Europe and the UK, we unlock significant commercial and operational synergies.
“This partnership gives our farmer-shareholders the opportunity to see the value of their residual 35% stake grow over the long term.
“The future looks much brighter than it did 12 months ago. We’re looking forward to getting down to work.”
Niall Browne, chief executive of Dawn Meats, said: “We are pleased and excited by the outcome of the vote by Alliance’s farmer-shareholders and we now look forward to maximising the potential of the new opportunities this strategic partnership will unlock in the future for both Dawn Meats and Alliance.
“Following an extensive engagement and due diligence process, Dawn Meats put forward a strong strategic partnership proposal involving a significant investment in a world-class company that shares our values, ambition and commitment.
“I would like to thank Alliance’s farmer-shareholders for carefully considering our offer over the last two months and supporting it to such an extent.”
Approximately $200m of the investment proceeds will be used to reduce Alliance’s short-term working capital facility, with the balance directed toward accelerating the board’s strategic capital expenditure programme.
Alliance says farmer-shareholders will also benefit from distributions of up to $20m in the curren and next financial year. In FY26, 45% will be paid as a dividend and 55% as a supply-based rebate.
In FY27, the co-ops says 75% will be paid as a rebate and 25% retained as earnings. Rebate payments will be calculated on a three-year rolling average of supply and capped at the current shareholding.
In addition, adds Alliance, up to $25m will be distributed as a dividend from the joint venture to the proposed Alliance Investment Co-operative following a stronger than forecast year-end result for Alliance.
