The sale of a 79.9 per cent shareholding in Scales Corporation, previously held by failed South Canterbury Finance (SFC), has been finalised.
Scales completely owned Mr Apple, the largest apple producer in New Zealand. With 20 orchards, three pack houses and a cool store, Mr Apple is one of Hawke's Bay's
biggest employers, with staff numbers rising to 1800 in peak season.
Scales' other Hawke's Bay operations included bulk storage, tallow, pet food processing, cold stores for meat and fruit industries, and extensive industrial land holdings at Whakatu.
The conditional sale by SFC receivers McGrathNicol was to New Zealand investment firm Direct Capital, established in 1994 to invest in private companies.
Hawke's Bay Fruitgrowers Association president Leon Stallard said the sale was good news for the Hawke's Bay apple industry and ended an unsettling period.
"There were all sorts of rumours going around," he said. "The sale gives Mr Apple some surety going forward.
"Direct Capital has experience with a large number of companies and have treated them well."
Co-investment from the NZ Superannuation Fund and ACC were a "natural fit".
Direct Capital was selected through a competitive sale process that commenced following SCF being placed into receivership in August 2010.
The sale price of $2 a share valued the shareholding at about $44 million.
Scales would convene a special meeting for shareholders to vote on the conditional sale.
Receiver Kerryn Downey said hard work had been rewarded with an excellent result. "It will provide increased certainty to all of Scales Group's stakeholders, customers, suppliers and minority shareholders," he said.
"It's very pleasing to have found credible New Zealand buyers for this leading multi-industry business."
Scales CEO Andy Borland said the new majority shareholder would provide Scales certainty in moving forward with its plans to grow.
