As The Axe Hangs Over Fairton Silver Fern Farms' Share Price Tanks
With the axe hanging over Silver Fern Farms’ Fairton plant and a tanking share price, NZ First is asking if the half-Chinese owned co-operative is being setup for a full takeover.
“Where’s the much hyped $2.84 a share promised by Silver Fern Farms’ Board, a gaggle of experts and an echo chamber of naive business writers?” says New Zealand First Leader and Member of Parliament for Northland, Rt Hon Winston Peters.
“Given Silver Fern Farms last traded at 51.5 cents a share on Unlisted, supplier shareholders and staff deserve more than an explanation. The exciting new world for Silver Fern Farms has vanished faster than prime lamb at a rugby post-match barbecue.
“Just 51.5 cents per share is 55% down on the 12-month high of $1.15. Even that ‘high’ only coincided with National greenlighting the half-sale of New Zealand’s largest meat exporter to Shanghai Maling.
“Then again a tanking share price is perfect for Shanghai Maling. Being the subsidiary of a Chinese State-Owned Enterprise it is now in the box seat to push for a 100% takeover. As a consequence you can probably expect more bad news to follow.
“The Silver Fern Farms story also tells you all you need to know about the quality of some business awards.
“In 2015, the NZ Herald’s own ‘New Zealander of the Year Awards’ made Silver Fern Farms’ CEO, Dean Hamilton, a finalist for Business Leader of the Year. Meanwhile Silver Fern’s Chair, Rob Hewett, was a 2015 Chairperson of the Year finalist in the Deloitte 200.
“If selling off your business to foreigners qualifies you for award contention then it tells you all you need to know about the quality of corporate governance,” says Mr Peters.