Landcorp backs alternative Silver Fern plan

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The alternative recapitalisation plan for Silver Fern Ferns has the support of the state-owned farm owner LandCorp, Invercargill-based H.W. Richardson, and Hastings based Lowe Corp, South Island company director John Rodwell said.

Silver Fern Farms' proposed joint venture with China's Shanghai Maling Aquarius, which requires a simple majority of over 50 per cent, goes to a farmer-shareholder vote on Friday.

Rodwell issued a statement saying the Silver Fern Farms board and management pursued the option seriously during July and August of this year, alongside the capital raising process being run by investment bank Goldman Sachs.

The underwrite effort was coordinated by Rodwell at the request of Silver Fern Farms, the statement said.

Through a process of face to face meetings and presentations made by directors and management of Silver Fern Farms and Rodwell, a group of New Zealand agri-business companies agreed to commit the $40m considered sufficient by the company to underwrite an issue of preferred shares to its shareholders, the statement said.

"As pointed out by the company recently, this $40m infusion was not sufficient to gain bank support.

"The underwrite group continues to be in place should that be of assistance to the company post its impending meeting on October 16," it said.

"It has grown in numbers and financial capability, with offers of participation having increased substantially and the capacity to increase further if requested. This has been conveyed to the company."

H.W. Richardson is a family owned transport business and Lowe Corp is an animal byproducts manufacturer.