Opotiki Packing and Coolstorage Limited (“OPAC”) announces the execution of agreements which will enable it to complete an over-subscribed equity capital raise
totalling $4.85 million. In addition to strong participation from existing shareholders and suppliers, the capital raise is significant for OPAC in introducing two new strategic shareholders to the business, Quayside Holdings Limited and Te Tumu Paeroa.
The transactions, which are subject only to shareholder approval at a special meeting on 18 December, will see each of Quayside Holdings Limited and Te Tumu Paeroa take 10.1% equity stakes in OPAC, with each party nominating a director for appointment to the OPAC board.
Quayside Holdings is the investment vehicle of the Bay of Plenty Regional Council, whose major investment asset is a majority stake in Port of Tauranga. Te Tumu
Paeroa, the office of The Māori trustee, manages significant Māori land holdings throughout New Zealand and in the OPAC home territory of the Eastern Bay of Plenty.
OPAC is expecting significant growth in kiwifruit processing volume in the next four years from its existing supply base, particularly in the high value Zespri SunGoldTM (G3) Kiwifruit variety. During 2015, OPAC began a capital investment programme which will span several years, installing a new packing line and building new cool storage facilities at its Opotiki site. The equity capital raise supports this investment programme.
OPAC CEO Ian Coventry commented “The OPAC Board is delighted to be able to take the agreements with Quayside and Te Tumu Paeroa to the shareholders for approval. Their interest in investment in OPAC is a significant vote of confidence in OPAC and the kiwifruit industry.”
Ian continued, “The investment also signals confidence in the prospects of both Opotiki and the Eastern Bay of Plenty as an area for horticulture, business
development and employment growth. This is also important to OPAC’s continuing success.”
Subject to the shareholder approvals, the capital raise will be completed in December 2015, providing a strong capital base for OPAC to plan ahead to both the 2016 kiwifruit harvest, and future investment for growth. OPAC was advised through the transaction process by Beale Capital Consultants Limited.
For further information please contact:
Ian Coventry, CEO, OPAC
021 505 708
Opotiki Packing and Coolstorage Limited (“OPAC”) is a post harvest and orcharding business operating in the kiwifruit industry. From its Opotiki head office and single site post harvest facility it provides services to 700 canopy hectares of kiwifruit orchards, processing more that 5.5 million trays of kiwifruit in 2015, predominantly from the Eastern Bay of Plenty and Gisborne regions.
Like the New Zealand kiwifruit industry generally, OPAC is enjoying a period of rapid growth, recovering from the production declines associated with Psa from 2012 to 2014. This recovery is being led by increasing production volumes of the Zespri SunGoldTM (“G3”) variety, which has shown superior tolerance to Psa. Zespri expects a compound annual growth rate for volume in the industry of 6.4% per annum for the five years until the 2019/20 season.
About Quayside Holdings Limited
Quayside Holdings Limited (“Quayside”) is the investment arm of the Bay of Plenty Regional Council established in 1991. It is, via a subsidiary, the majority shareholder of the Port of Tauranga Limited and an issuer of securities on the New Zealand Exchange.
Quayside has a diversified investment portfolio which includes property, shares and Kiwifruit orchards (via its Rangiuru Business Park site). Quayside continues to seek new regional opportunities for investment with which to further diversify its income base.
About Te Tumu Paeroa
Te Tumu Paeroa is an independent, professional trustee organisation providing services to Māori landowners. It works with owners to ensure their whenua (land) is protected, and to build the benefits for the owners now and in the future. Its Chief Executive is The Māori Trustee, Jamie Tuuta.
Te Tumu Paeroa manages:
• 100,000 hectares of Māori land
• 2,000 land blocks
• More than 85,000 owner accounts
• $100 million in client funds
Within the Eastern Bay of Plenty, Te Tumu Paeroa provides trustee services to over
5,000 hectares of land.