Satara Co-operative to merge with Seeka

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Kiwifruit grower Satara Co-operative is set to amalgamate with Seeka Kiwifruit Industries as the industry struggles with the outbreak of Psa bacteria a year ago.

The deal would give Satara shareholders one Seeka share for every 3.14 Satara shares, and will need shareholders' approval at an AGM next month.

The directors reached the valuation based on the illiquidity of trading and the uncertainty of earnings caused by Psa.

Seeka shares last traded at 92c on November 8, valuing the company at $13.3 million by market capitalisation. Satara last traded on July 6 at 55c, giving it a market cap of almost $9 million.