Moscow, Russia, June 7, 2008 – Nutritek Group (“Nutritek” or “the Group"), a leading Russian producer of baby food products, announced today that it had acquired 51,52% of the shares in New Zealand Dairies Limited (NZDL) and became the first overseas investor to gain control over a New Zealand milk processing business valued above US$100.
Consolidation of 51,52% of NZDL shares became possible after obtaining in end May the consent of the Overseas Investment Office of New Zealand to increase the Group shareholding up to 100%. Nutritek Group has firm agreements in place to continue increasing its shareholding in NZDL along next 12 months..
Welcoming the announcement, Mr George Sazhinov, Chairman of Nutritek, said that gaining a controlling stake became a new milestone in the implementation of the Group’s strategy in investment in Asia-Pacific region. Nutritek now be proceeding with plans to add further production facilities to the NZDL plant at Studholme, South Canterbury, and to develop high-technology and high value-added products in New Zealand.
Mr Sazhinov was grateful to the New Zealand Government for its high estimate of technology potential of the Russian business when it approved the Group’s application to increase its stake to 100% in a New Zealand milk processing company valued above US$100. He said that Nutritek highly appreciated the support it had received from Canterbury farmers that concluded long-term milk supply contracts with NZDL and from the local community that during recent months of awaiting the decision of the Overseas Investment Office had been confident, that Russian investor will establish itself in New Zealand business community. The Group was grateful to Mr Peter Lavery, Chairman of the NZDL Board, his fellow Board members, and to management and staff of NZDL for their support and understanding.
Mr Sazhinov hoped that Nutritek’s investment in New Zealand would prove to be a landmark in the development of Russia-New Zealand business relations. He believed that it would open up further possibilities for economic cooperation to the benefit of both countries.
Group Chief Executive, Mr Oleg Ochinsky, said that gaining control over NZDL would significantly enhance the construction of Stage II to double production, create new workplaces and broaden milk supply. This will be another step towards building long-term partnership and will help to enhance mutual understanding and credibility of Russian business.
The New Zealand Dairies Limited’s plant is located in South Canterbury district of New Zealand’s southern island, considered to be one of the best raw milk producing areas in the world. The plant’s first stage milk processing capacity is 150 thousand MT per year. It enables produce 18 thousand MT of grown up milk base and assures Nutritek’s sales in South-East Asia of about $US200 million in 2009 financial year.
The Nutritek Group invested US$100 million in debt and equity into the plant’s construction. The commissioning of the first stage of the plant in October 2007 was part of the Nutritek Group’s strategy of baby food business expansion in South-East Asia and China.
Nutritek Group is one of the leading producers of baby and specialist foods in Russia. Founded in 1990, the Group comprises food production and agricultural facilities in Russia, Ukraine, Estonia and New Zealand. The Group generated US$378.9 million of revenues for the full 2006 financial year, ended March 31, 2007.