Blue Sky Meats (N.Z.) Limited
Registered Office Address
Mcculloch & Partners
Cargill Chambers
128 Spey Street
Invercargill
Directors
CARNAHAN, P.
McMILLAN, M.
THOMAS, Barry
COONEY, Graham John
HOULKER, James Peter
Background
Incorporated: 10-OCT-1986
A HACCP approved Meat Processing company employing 310 people at a
plant in Morton Mains near Invercargill.
Shareholders have preference when supplying stock to the plant.
All Share transactions have to approved by the Board of Directors.
Major Shareholders
Website
www.bluesky.co.nz
News
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22nd November 2002 - NBR Personal Investor
LOWE WAIVES CONDITIONS FOR BLUE SKY BID
By Chris Hutching
Blue Sky Meats chairman Barry Thomas has been successful in negotiating an increased price
that Lowe Corporation of Hastings is prepared to bid for the shares in the Invercargill
processor.
Lowe has raised the price from its initial bid of $4.50 a share, valuing Blue Sky at $33
million, to $5 a share, valuing the company at just over $36 million.
Lowe has also changed some of the conditions that earlier gave rise to concerns from the
Takeovers Panel. They related to a proposed $2.7 million payment to 37% shareholder Horizon
Meats to terminate a marketing contract. The Takeovers Panel considered whether this amounted
to preferential treatment but decided it did not and gave the go ahead for the takeover to
resume a couple of weeks ago.
Lowe and Horizon have also agreed to maintain the marketing contract in deference to Blue Sky
concerns that termination might result in higher marketing costs.
The takeover was largely driven by Horizon's desire to cash up its shareholding and it
approached Lowe Corporation earlier in the year because it felt Lowe was the obvious
purchaser for those shares given its long involvement in the industry, according to chief
executive Graeme Lowe.
Over the past couple of days shareholders received a letter from Lowe Corporation modifying
conditions of the takeover. It will waive the earlier requirement that the takeover depends
on 90% acceptance of the bid in order to allow local farmer shareholders to retain an
interest should they wish. But by law the offer is still conditional on obtaining acceptances
of more than 50% of the shares.
Lowe said it would work with Blue Sky Meats management and representatives of farmer
shareholders to set up a "right to killing space," to preserve slaughter rights of farmers
wishing to sell their shares.
Blue Sky Meats shares are traded on the unlisted share exchange used by brokers. On Wednesday
a parcel worth $23,000 sold at $4.60 a share just before the announcement the bid was being
lifted to $5.
In stark contrast to the other meat companies that recently reported significantly reduced
profits, Blue Sky Meats under the stewardship of the canny Mr Thomas over several years
recently posted an after-tax profit of $4.4 million, compared with $4.2 million last year.
Revenue was also up at $95 million ($82 million last year), allowing a higher dividend of 27c
a share (22c last year). It had no debt, $1.9 million in the bank and $20 million in
inventory and accounts. The takeover offer has been extended to December 20.
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26 Sep 2002 - NZUM
BLUE SKY MEATS BIDDER REVEALED
Hastings based Lowe Corporation Ltd has been identified by NZUM as the mystery bidder for
Blue Sky Meats. Lowe Corporation has indicated that it intends to make a full takeover offer
for all shares in Blue Sky Meat (NZ) Ltd at $4.50 cash per share, being a substantial amount
above the last trade price of $3.40 per share.
The Directors of Blue Sky Meats will meet early next week to consider the offer and will
appoint an independant appraiser to advise on the merits of the offer. Once the independant
report has been received then the Directors will consider it and advise their recommendation
in response to the offer. Until then, Directors are advising shareholders to not sell their
shares or accept the offer if received.
Lowe Corporation was formed after the sale of the meat processing interests of Lowe Walker
Limited to Richmond in 1998 and undertakes Bovine skin processing and exporting along with
a number of related operations. In 2001 Lowe Corporation acquired Colyer Mair from a Richina
Pacific subsidary.
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23 Sep 2002 - NZUM
MYSTERY BID FOR BLUE SKY
The Unlisted market may be about to lose yet another gem, with a mystery bid for Blue Sky
Meats having been presented to the companies Directors.
NZUM's source close to the company had little to reveal, only to repeat the message given by
Directors in a letter to shareholders that they should think very carefully about selling
shares in the company, as the ongoing talks may have an effect on the share price.
Other media have speculated that the bid may be from a North Island meat company, but this
has yet to be proven.
Blue Sky Meats are a highly profitable single chain meat processing company based at Morton
Mains in Southland.
Shares traded recently at $3.40 with no impact seen as yet from the potential takeover bid.
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23.06.01 - NZUM
Blue Sky Meats recorded a $6.3 million profit (pre-tax) last year - up from $3.3 million the
previous year. The Directors have recommended a final dividend of 22 cents per share.
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