John Ryder is the chairman.. can't be that bad...
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John Ryder is the chairman.. can't be that bad...
Tend to agree with you.
Couple of reasons :
1. Direct Capital has been in NZKS now for 8 years as they bought in 2008 for around $50m. Private equity usually exits between 3 to 5 years. Something suggests that the investment has not gone as well and to plan as they expected. Looks like the growth and expansion they were looking for have not happened.
2. $30m to be raised for capital upgrade and development is bugger all for the two shareholders - presumably they will be very happy to put in that kind of money if the returns are going to be there. Instead they are looking to exit if enough interest through this 'priority offer' is shown?
Thanks to other posters for their views on this one. I'll be staying clear and watching from the sidelines.
To put things in perspective for their 3 new farms
http://www.stuff.co.nz/business/farm...-plug-on-China
Didn't know the cap on supply was that low. A shame how barriers and high demand have outweighed the benefits of exporting. I would have thought a joint approach with other NZ salmon farmers would have been goer rather than just putting it in the hard basket.
Really interesting how companies approach exporting to China. Such large barriers getting in compared to other countries, hard not to be irritated given the ease going the other direction.
NZ exports to China have grown by billions of dollars since FTA - no complaints from the exporters.
A lot of complaints from those who are hell bent on wrecking NZ's economy for their political ends - namely Labour, Greens and NZ First, as well as competitors to China imports however. And all too easy to use the race card to court the xenophobic economic insecure voters.
Meanwhile, don't believe everything you read about NZ salmon exports to China - they are making much much better money supplying to the domestic market, Japan and US. China is not a market which is prepared to pay top prices for NZ salmon vs the farmed salmon from Scotland, Chile and Norway.
Note to myself.....never touch anything to do with fish! Aquaria 21, Regal Salmon, SeaDragon.......
That Tassal in Australia seems to do OK