T&G Global, which sells fresh produce to more than 60 countries, spent $100m on a new packhouse at Whakatu, near Hastings. Photo / NZME
Communication between apple exporter T&G Global and its majority owner, Germany’s BayWa, would appear to be an issue.
Last Friday, T&G Global said it was aware of speculation in the Australian Financial Review (AFR) regarding a potential sale of the company but it did not know whether BayWa had made a decision.
Later in the day, T&G Global acknowledged the parent’s annual report – received overnight – showed it had put the company up for sale.
NZ Shareholders’ Association chief executive Oliver Mander said the episode indicated a “hands-off” approach from the majority (74%) shareholder.
“When it becomes as existential as to whether they remain a shareholder, it’s interesting from an engagement perspective,” Mander told Stock Takes.
“Their disclosures have gotten better over the last three or four years, and that’s commendable, but it is certainly not the most engaging of companies listed on the NZX from a shareholders’ perspective.
“If I were an independent director, I would be asking a few questions as to why it did not come up earlier.”
Like many in the horticulture sector, T&G Global took a hit from Cyclone Gabrielle.
In its latest result, T&G Global said high demand for T&G Global’s premium Envy and Jazz-branded apples, coupled with higher pricing in global markets, helped it bounce back from the impact of the cyclone.
For the year ending December 2024, the company recorded a loss before tax of $6.8 million, compared with a pre-tax loss of $64.2m in 2023, and an operating profit of $12.7m (the previous year’s loss was $45.6m).
In response to an open letter to shareholders circulating on social media platform X that was critical of the company’s performance, T&G Global chairman Benedikt Mangold said the board was confident in the company’s strategy “and we continue to be pleased with our financial progress”.
“We are fully aligned with management on the company’s outlook, and we look forward to updating the market and shareholders on August 8 with our half-year results,” he said in an email to the Herald.
Mangold said if shareholders had any concerns, they had not been raised at the company’s annual meeting in May.
T&G Global, which sells fresh produce to more than 60 countries, is itself going through a process to consider its strategic options and has engaged Craigs Investment Partners to advise it.
Late in 2021, the company announced it would spend $100m on a new state-of-the-art packhouse adjacent to its Whakatu site in Hawke’s Bay.
As well as improving productivity, the new facility would allow T&G to accommodate increasing volumes of Envy and other apple varieties.
AFR’s Street Talk said Australian fund manager ROC Partners “likes the look” of T&G Global.
The paper also said T&G Global would be a logical bolt-on for Macquarie Asset Management.
In BayWa’s annual report, new chief executive Frank Hiller said the company was embarking on a “fundamental transformation” bringing an end to its debt-financed expansion.
BayWa, which has interests ranging from food to construction and energy, first made its play for the then Turners and Growers in 2011, with the intention of a complete takeover.
A pre-bid agreement with shareholder Guinness Peat Group meant it already had 63.5% of the shares locked up. The offer was for all shares in NZX-listed Turners & Growers at $1.85 a share, valuing the company at $216.5m.
But rather than go to 100%, BayWa was persuaded to remain a majority owner, allowing minority shareholders to stay on the register and for Turners and Growers to retain its NZX listing.
Meanwhile, speculation over T&G Global’s future has not done its share price any harm.
The stock now trades at around $2.05 – its highest point since October 2023.
Brokers Forsyth Barr say the favourable pricing backdrop for Port of Tauranga (POT) continues, with the company set to materially increase its access pricing at MetroPort from September 1.
“Its vehicle booking system charge will rise by more than 100%, which we estimate will contribute incremental annualised revenue of $9m, assuming no volume offset,” the broker said.
“Pricing remains POT’s key lever in lifting its return on invested capital above its 7% target by 2028, particularly given: (1) container terminal capacity constraints; and (2) the pricing behaviour of key competitor, Port of Auckland.”
Forsyth Barr has raised its net profit forecast for 2026 by 3% to $146m and has left its 2027 forecast unchanged at $168m.
Forsyth Barr has welcomed Ryman Healthcare’s (RYM) latest first-quarter sales update.
Encouragingly, forward-looking contracted sales continued to recover, it said.
“One swallow does not make a summer, but we view this as an important step in de-risking the investment case,” the broker said.
“The key risk since RYM’s pricing strategy change and dramatic drop-off in sales has been that it would build resales inventory at a high rate, forcing RYM to buy back units – creating a meaningful cash flow drag.
“Current resales levels remain insufficient to halt inventory build, but this update is a clear step in the right direction and should materially reduce the rate of inventory build.”
Jarden has released its analysis of Meridian and Mercury’s operating stats for June.
It said Meridian’s figures imply 2025 earnings before interest, tax, depreciation and amortisation (ebitda) of $612m, down from $905m in 2024.
Mercury’s update implies 2025 ebitda of $768m, down from $877m reported in 2024.
“We retain our $7.40 target price for Mercury and reaffirm our overweight rating, reflecting discounted valuation.”
Listing the potential risks for Mercury, Jarden cited regulatory changes, transmission pricing methodology adjustments, wholesale spot price fluctuations and higher-than-historical inflows into its hydro generation from Lake Taupō down the Waikato River chain.
The firm maintains a neutral rating on Meridian, with an unchanged target price of $6.47.
Among the risks, Jarden again listed regulatory changes for Meridian.
Annual results from Mercury are due on August 19 and August 27 for Meridian.
Meanwhile, the High Court this week approved a scheme of arrangement under which Meridian will acquire all of the shares in NZ Windfarms.
Provided the remaining customary conditions are satisfied or waived, implementation of the scheme will occur on July 30, Meridian said.
Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.