S.F.M. board rejects merger terms

Press, Volume CXV, Issue 33773, 20 February 1975, Page 11

S.F.M. board rejects merger terms

The agreement which appealed to have been reached after discussions on Friday between the boards of the New Zealand Refrigerating Company. Ltd. and the Southland Frozen Meat and Produce Export Company, Ltd. has fallen through.

The chairman of New Zea-j.i land Refrigerating (Mr C. S.il Peate). reporting in a letter to shareholders on the ' developments at and since I the meeting, said that on : Friday the negotiating com- i mittee? of N.Z.R. and S.F.M. ’< unanimously agreed on a i merger plan, subject to the ' approval of the respective boards. “In making the recom-j mendations, the N.Z.R. negotiating committee was to urge its board to recommend to stockholders the acceptance of the offer. Similarly, the S.F.M. negotiating Committee was to recommend to its board the making! of an offer to N.Z.R. stock-: holders in terms of the!

merger plan.” said Mr Peate in the letter. After this meeting, Mr Peate and the chairman of S.F.M (Mr A. F. Gilkison) said in a joint statement that they expected an early decision, enabling them to make a final announcement! within a few days. Mr Peate said in his letter that the board accepted the recommendation “Although the S.F.M. negotiating committee made; the recommendation to the! S.F.M. board, the chairman of S.F.M. on the afternoon of February 17 told me that 5 his board had not accepted; Jit,” Mr Peate said. “He said that, in due ; course, further proposals! j would be submitted, but he I would not join in a press release from both chairmen.” j “However, because of the ; press statement that a final, announcement on the deci-) Ision would he made in the; next few days, I consider: (that I should immediately ; pass this information on to; ! you. “I am sorry this unforeseen development has | occurred,” said Mr Peate. |“ln the meantime, no good I purpose would be served by Imy elaborating upon all the : developments since the merger proposals were first considered. “At the appropriate time, if it should be necessary, 1 shall do so.” Mr Peate said that shareholders would be informed immediately if and when final proposals were made.