By LIAM DANN
New dairy export company Open Country Cheese will launch its public offer to raise up to $20 million this Thursday.
The company, set up by former National MP Wyatt Creech, plans to offer 15 million shares at $1 each. The money will be used to complete the fit-out of
its cheese factory at Waharoa.
Over-subscriptions for a further $5 million to help cover initial operating costs may also be accepted.
If the public offer is successful, the company will have total capital of about $28 million.
At present $13 million in equity is owned by cornerstone investor Talley's Fisheries and the founding shareholders, who include Creech.
By September this year the company will have a state of the art factory capable of producing 20,000 tonnes of cheese a year, Creech said.
When it begins production in October it will be the first new major independent dairy operation since Fonterra was formed in 2001.
The venture had been made possible by the Dairy Industry Restructuring Act of 2001 and heralded the beginning of exciting new possibilities for the industry, Creech said.
The offer would allow the company to enter the export market debt-free.
"At full production levels Open Country will be a substantial dairy company with annual sales expected to exceed $85 million."
Open Country is handling all aspects of the offer itself and no broking firms have been used to market the shares.
There were no immediate plans to list the shares on any of the NZX exchanges, Creech said.
That may be reviewed when the company's medium-term development plan reaches an appropriate point, he said.
Until then the company will maintain its own database of investors wishing to trade shares.
After the completion of the public sale, which closes on July 30, $34.12 million shares will be on offer.
OPEN COUNTRY CHEESE
Seeking up to $20 million.
Funds earmarked to complete cheese factory at Waharoa.
Cornerstone shareholder Talley's Fisheries.
Production starts October.
