JBS SA gains stake in NZ tech company
March 30, 2016
by MEAT+POULTRY Staff
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DUNEDIN, New Zealand – Regulatory authorities in New Zealand approved a deal that gives JBS SA, the world’s largest meat processor, a controlling stake in Dunedin-based Scott Technology Ltd., an automated technologies manufacturer. Scott Technology manufacturers automated lamb deboning and beef and lamb deboning systems, among other technologies.
The Overseas Investment Office approved JBS’s purchase of a 50.1 percent stake in Scott Technology. Scott shareholders approved the deal in November 2015. Terms of the deal include placement of 10 million Scott shares at NZ$1.39. The offering will generate about NZ$63 million ($42 million), which Scott plans to use for expansion.
The deadline for OIO to approve the transaction was April 29. Shareholders began to raise concerns that the regulatory process would extend beyond the deadline. In an update published in February, Scott said “We are well aware of the uncertainty that the OIO process creates and all parties are frustrated, including a large number of shareholders who have contacted the company seeking an update on the approval process. This includes shareholders who have sold some or all of their shares in Scott under the offer and who are seeking payment from JBS, and shareholders who have provided capital under the rights issue but who are yet to be issued with those new shares.”
Now that the deal has received OIO approval, the transaction can be completed in the coming weeks.