BUSINESS NEWS
July 03, 2012 12:00:00 AM
  Follow @ Twitter

Southern Cross Foods Limited is the new owner of Fiji Dairy Limited (FDL).

This was announced this afternoon by Minister for trade and Attorney General Aiyaz Sayed-Khaiyum.

Sayed-Khaiyum said this was after cabinet approved the sale of FDL to Southern Cross Foods Limited a subsidiary of CJ Patel with a purchase price of $10million.

“The $10 million could fluctuate depending on the level of debts at the time of the actual sale being finalised but together with SC Foods it will takeover the entire debt portfolio of Fiji Dairy Limited which is approximately $17 million,” said Sayed-Khaiyum.

He said the agreement for sale has number of conditions to it and this has been agreed to with the proposed purchaser.

“They will hold 80 per cent of the shares in the company, the farmers will continue to hold 20 per cent so they will have all the dividend rights but not the voting rights but the farmers will have a 100 per cent control of the Fiji Corporative Dairy Limited which is their organisation, they will all be shareholders in that and of course they will get dividend in that,” he said.

Meanwhile, FDL chair Adrian Sofield said they received 16 expression of interest and they narrowed it down to 12 and then to two companies after tow companies withdrew.

He said the company was chosen because they have a good distribution network and experience in food processing not only in Fiji but other Pacific islands.

He also said  the whole process will be finalised within six to eight weeks in order to get all the paper work done.

By Mereani Gonedua
 

Wiggle


PREVIOUS STORY
Stock market not necessary here: Sharma
NEXT STORY
Get business in order: Commission urges

Bookmark and Share
   




FIJI NEWS
Australia reviews Fiji SPARTECA dealAustralian Minister for Industries, Ian Macfarlane is currently reviewing the South Pacific Regional Trade and Economic Co-operation Agreement (SPARTECA) deal with Fiji.
WORLD
'Green'-tinted SUVs at Seoul Motor ShowGas-guzzling SUVs, eco-friendly electric cars and the odd brave attempt to marry the selling points of both are taking centre stage at the biennial Seoul Motor Show.
TECHNOLOGY
Vodafone Fiji, Tonga telco in allianceVodafone Fiji and Tonga Communications Corporation today signed a strategic partnership alliance that will allow the Tongan company to leverage off the experience of their Fijian counterparts.
HEALTH/FITNESS
Clean-up day to curb dengue outbreakFiji's Ministry of Health has declared a clean-up day next Thursday for residents in the central division as it ups the tempo against a dengue fever outbreak currently experienced in the country.
SPORTS
Tovolea win Great Eight 7sUnknown Tovolea held on to defeat a star-studded Tabadamu side 19-14 at Lawaqa Park today to win the Coastal Great 8 Sevens title.
ENTERTAINMENT
Meghan Trainor to release debut album TitleMeghan Trainor has a brand new single Lips Are Movin, ahead of the release of her debut album Title on January 9, 2015.
NEWS SPORTS INFOTAINMENT SERVICES MOBILE EXTRA HOT TOPICS