By LIAM DANN
When kiwifruit company Satara joins the stock exchange later this year it will be the third primary industry co-operative on the NZAX.
The nation's largest kiwifruit co-operative, it follows Wool Equities and Livestock Improvement (LIC) on to the exchange.
Like the others it will use a two-tiered share structure to
ensure control remains with its farmer shareholders. Unlike the others it will allow outside investors to buy in.
Chairman Andrew Fenton said the move would allow the company to seek new capital for modernising and automating its packing plants.
Though Satara will not use the listing to make an initial public offering it would be looking for investment capital within two years.
The two-tier share structure means growers will retain a majority block of non-tradeable shares based on the number of trays they produce each season - basically a $1 share per tray produced. That will ensure they always have a 60 per cent controlling stake in the company. The remaining shares are investor shares which can be traded on the exchange.
The grower ownership could be a plus to some outside investors because it meant the company was very stable, he said. Growers voted overwhelmingly to go ahead with the listing - 98 per cent were in favour.
Fenton said the listing had an added benefit for growers in that it allowed those who retired to retain an active interest in Satara through the investor shares. "It can be like a superannuation plan for them."
Last year Satara harvested more than 11 million trays of kiwifruit and had a turnover of $50 million. Before-tax profit was $3.7 million.
It is the largest grower company in the kiwifruit industry and Zespri's biggest single supplier - accounting for about 13 per cent of Zespri's inventory.
