Binxi wants Overseas Investment Office to continue review process

NZ Binxi (Oamaru) Ltd had to withdraw its takeover offer for Blue Sky Meats last month. Photo / Simon Knyvett

NZ Binxi (Oamaru) Ltd has asked the Overseas Investment Office to continue the review process after withdrawing its takeover offer for Blue Sky Meats last month.

In a statement, the Chinese-backed company said it was disappointed to have withdrawn its offer, which was $2.20 a share.

It had been committed to a successful offer for the Southland-based meat processor and had gone to ''significant expense'' to seek a such an outcome.

The offer was withdrawn following a review of the forecast profitability for Blue Sky for the 2017 year and following discussions with the company. Binxi had also not received OIO consent by the March 20 deadline.

Both those factors meant it had to withdraw its offer, despite achieving a 96% acceptance rate from shareholders. Binxi had asked the OIO to continue the review process, the statement said.

As a 13% shareholder in Blue Sky, Binxi hoped to see an improvement in its trading performance and would continue to ''work constructively'' with Blue Sky and its shareholders over the coming months.

ANZCO Foods has reported a pre-tax profit of $17million for the year ending December 31, a 21% increase on the previous year's $14million profit.

Total revenue was down from $1.54billion to $1.45billion, which managing director Mark Clarkson attributed mainly to foreign currency exchange rate movements.

A focus on working closely with majority shareholder Japanese-owned Itoham contributed to the company's solid performance, chairman Sir Graeme Harrison said.

Growth in the Japanese market, including grain-fed beef and manufactured food products, were key areas of gain, he said.

ANZCO invested more than $23million during the year enhancing processing capability at its Rangitikei and Canterbury sites to meet customer requirements, along with a growing commitment to value-adding business activities.

That included a significant increase in Angel Bay manufacturing capacity at its Green Island site in Dunedin.