DMS sells stake in Seeka over its direction

Michael Franks

Bay of Plenty kiwifruit management company DMS says it sold its 4 per cent stake in NZX-listed Seeka Kiwifruit Industries this month to Sumifru Singapore because it was dissatisfied with Seeka's direction and performance.

DMS director Craig Greenlees said Seeka was placing a strong focus on other produce internationally, such as bananas, and now Australian kiwifruit, cherries and stonefruit through its recent $25 million acquisition of Bunbartha Fruit Packers in Australia.

"We have concerns about this international strategy and its potential competition against New Zealand-grown kiwifruit in the key markets of Australia and Asia," he said.

Craig Greenlees

Seeka's chief executive Michael Franks thanked DMS for its support while it was a shareholder. But he said Seeka was delivering on its goal of becoming a premium produce company for its growers and shareholders.

Seeka, New Zealand's biggest kiwifruit grower, holds the New Zealand agency for Sumifru bananas. Sumifru bought a small shareholding in January this year, before acquiring the DMS stake this month.

"We welcome Sumifru increasing their shareholding," said Mr Franks. "It's a fantastic vote of confidence in the company having an international blue-chip company like Sumifru increasing their stake in Seeka. It provides liquidity to the stock and adds value to all shareholders."

Seeka this month reported a six-month net profit after tax of $3.72 million, up 152 per cent on the corresponding period in 2014. The company forecast its full-year net profit after tax would be up by between 30 per cent and 40 per cent on the $3.17 million reported for full year 2014.

DMS is a locally owned and operated orchard management and post-harvest operator, with major sites in the Bay of Plenty, and is controlled by Mr Greenlees and fellow director Paul Jones.

Mr Greenlees said funds from the sale of Seeka shares would be used to continue the DMS programme of investment in new coolstores.