JBS to acquire stake in NZ company
Aug. 20, 2015
by MEAT+POULTRY Staff
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JBS made a bid for a stake in Scott Technology, which manufactures automated processing systems like this lamb boning system.
(Photo: Scott Technology)
SAO PAULO, Brazil – JBS SA announced the company, through its subsidiary JBS Australia Pty. Ltd., made a conditional offer to acquire a 50.1 percent stake in Scott Technology Ltd., an automated technologies manufacturer based in Dunedin, New Zealand.
Terms of the deal include placement of 10 million shares at NZ$1.39 to provide the capital Scott needs. Shareholders of Scott who want to reduce or sell all their shares would receive an offer price of NZ$1.39 per share. Shareholders who don’t want to sell or would like to increase their shares would receive a 1-for-8 non-renounceable rights issue at the same price. The offering represents NZ$63 million ($42 million).
Scott Technology previously notified its shareholders of the need to raise capital and reduce debt following recent acquisitions. “Having started on this journey, and after considering the company’s size and level of institutional interest in Scott, the company believed our growth aspirations would be best achieved with a relevant industry based cornerstone shareholder,” the company said in a letter to shareholders.
JBS has an existing business relationship with Scott Technologies; and many of Scott’s current meat processing developments were undertaken in conjunction with JBS Australia and globally. Scott Technology manufacturers automated lamb deboning and beef and lamb deboning systems, among other technologies.
The deal is subject to approval by Scott Technology shareholders and government regulatory authorities.