Latest / Best of Business / Jamie Mackay: The Country host on Alliance Group voting for the Dawn Meats deal

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Jamie Mackay: The Country host on Alliance Group voting for the Dawn Meats deal · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talk zed Be
• 0:12
  Speaker 1: follow this and our wide range of podcasts now on iHeartRadio,
• 0:18
  Speaker 1: The Rural Report on Heather, Do to see Alan.
• 0:21
  Speaker 2: Drive Jamie Mackay, The country is with us? Hello, Jamie.
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  Speaker 3: I can't even get one word or let alone six
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  Speaker 3: hundred and thirty three or whatever, Heather. So you're still
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  Speaker 3: a winner in my eyes?
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  Speaker 2: Well, mate, thank you, but that don't don't don't be
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  Speaker 2: so stoked. There are some people who have like streaks
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  Speaker 2: of about one thousand plus, so I am but a
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  Speaker 2: child compared to them. Anyway, It's not to be. That's
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  Speaker 2: the end of that for me. Now, Alliance not a surprise,
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  Speaker 2: is it?
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  Speaker 3: No, not a surprise at all. Look, it was a
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  Speaker 3: really Hobson's choice for the farmers. So the vote finished yesterday.
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  Speaker 3: They announced the results this morning. An overwhelming mandate is
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  Speaker 3: what i'd call it. Eighty eight percent of the shares
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  Speaker 3: on issue voted, which was important because they needed at
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  Speaker 3: least fifty percent of them to vote, and of those voted,
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  Speaker 3: they need a seventy five seventy five percent majority. They
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  Speaker 3: did much better than that. They got eighty seven so
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  Speaker 3: that met the threshold required by the Takeovers Code. You
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  Speaker 3: all know the deal by now two hundred and seventy
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  Speaker 3: million from the Irish meat company. Dawn meets for sixty
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  Speaker 3: five percent of the Alliance group. There are some synergies
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  Speaker 3: and advantages because Dawn meats very strong and beef. The
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  Speaker 3: Alliance is the world's biggest sheep meat processor, so they're
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  Speaker 3: going to balance each other out there. Obviously, Northern Hemisphere
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  Speaker 3: supply versus Southern Hemisphere supply. That all round, all round
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  Speaker 3: supply is going to be good. Markwin, the chair who's
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  Speaker 3: really staked his reputation on this one, was pretty tough
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  Speaker 3: when I was talking to him today. And you know
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  Speaker 3: who were Dawn Meats. While they were established in the
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  Speaker 3: nineteen eighties by three Irish farming families. They processed three
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  Speaker 3: and a half million sheep and one million cattle a year.
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  Speaker 3: That's a lot of cattle. Forty thousand farmers supply eyeing them.
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  Speaker 3: That makes them bigger than any meat company here in
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  Speaker 3: New Zealand. Turnover of five point eight billion, which is
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  Speaker 3: two to three times any meat company here in New
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  Speaker 3: Zealand for eleven processing sites in Ireland at thirteen in
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  Speaker 3: the United Kingdom. But as I said Hobson's choice for
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  Speaker 3: the farmers, they didn't really have much of an option.
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  Speaker 3: The proposal to recapitalize from some high profile, high wealth
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  Speaker 3: farmers didn't really take off. So really, hither it's up
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  Speaker 3: to the batter's box for the next farmer co op vote,
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  Speaker 3: and that is Fonterra.
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  Speaker 2: Do you think any of these farmers will all shareholders
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  Speaker 2: would have been put off by Winston Peters?
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  Speaker 3: Oh, I don't know. Winston's blustering away on this one,
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  Speaker 3: and Shane Shane Jones is also as well. This is
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  Speaker 3: all part of the New Zealand first nationalistic view on life,
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  Speaker 3: where any foreign investment is totally evil. Look, Winston, as
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  Speaker 3: much as I admire them on occasions, is totally wrong here.
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  Speaker 3: It's none of his business. He needs to butt out.
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  Speaker 3: These are farmer owned cooperatives. The only people who have
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  Speaker 3: a right to make a decision here are the owners
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  Speaker 3: of the company or in this case the cooperatives, the farmers,
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  Speaker 3: just like the Fonterra one. He's jumping up and down
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  Speaker 3: about that, and Change Ownes was saying, well, Fonterra is
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  Speaker 3: going to come knocking at my door needing favors. I said,
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  Speaker 3: to him, it sounded a bit like a threat. So
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  Speaker 3: that vote, Heather, we'll know that one next Thursday. We're
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  Speaker 3: about to talk about that one Thursday week, October the thirtieth,
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  Speaker 3: And you know you don't look a gift horse in
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  Speaker 3: the mouth. The farmers are of course going to vote
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  Speaker 3: to get three point two billion of the four point
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  Speaker 3: two billion that they're going to get from the sale
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  Speaker 3: to the French dairy giant. Luck tellus, I hope I
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  Speaker 3: got that right. I don't think I did. No, I
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  Speaker 3: didn't go with lactalise, thank you, Heather. Well, you're multilingual, Oz.
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  Speaker 2: I don't even know that I got it wrong. But
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  Speaker 2: I just I think if you if you just come
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  Speaker 2: at it with some confidence, I think you know, wins
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  Speaker 2: the day.
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  Speaker 3: The great the great Key Quinn used to say in
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  Speaker 3: rugby commentary back when I was a commentator many years ago.
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  Speaker 3: If you can't pronounce it, just say it quickly, and
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  Speaker 3: I should have. I've missed a trick there. Look, they're
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  Speaker 3: going to get two dollars per share tax free capital return.
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  Speaker 3: That's something like three to four hundred grand for your
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  Speaker 3: average farmer. A lot of that's going to go into debt. Repayments.
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  Speaker 3: Some of them paid big money for their Fonterra shares
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  Speaker 3: in the first place, but a lot of that, some
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  Speaker 3: of it is going to find its way into essential
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  Speaker 3: farming expenditure. And I'm talking about replacing utes and tractors
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  Speaker 3: that are overdue to be replaced. So this is going
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  Speaker 3: to be a real kick in the backside for the economy.
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  Speaker 2: Oh brilliant, Hey, Jamie, listen, Thank you very much. Appreciate you.
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  Speaker 2: Jamie McKay, Host of the Country.
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