AUSTRALIA: Kiwi Co-op Dairies increases stake in Peter and Brownes Food, has "hands off" control

AUSTRALIA: Kiwi Co-op Dairies increases stake in Peter and Brownes Food, has “hands off” control

Peters and Brownes Food (PB) was given a A$92.4m boost last week as Kiwi Co-operatives Dairies became the processor's largest shareholder, increasing its stake from 54% to 68%. PB, based in Western Australia (WA), welcomed the cash injection as evidence that Kiwi is confident in the efficiency and productivity of the Australian dairy sector. Managing director Graham Laitt explained that Kiwi would adopt a "hands off" management style and said that the company would now be able to expand export operations, as the cash injection would be used to retire debt.

March 22, 2001

Peters and Brownes Food (PB) was given a A$92.4m boost last week as Kiwi
Co-operatives Dairies became the processor’s largest shareholder, increasing
its stake from 54% to 68%.

PB, based in Western Australia (WA), welcomed the cash injection as evidence
that Kiwi is confident in the efficiency and productivity of the Australian
dairy sector. Managing director Graham Laitt explained that Kiwi would adopt
a "hands off" management style and said that the company would now
be able to expand export operations, as the cash injection would be used to
retire debt.

Kiwi’s input is expected to be a positive. The New Zealand based company insists
that it has no plans in the short term to focus its operations in WA, but that
it has expressed much interest in the area, identifying seven innovations WA
farmers may employ to increase efficiency.

Laitt added the suggestion that he may be looking to increase his own stake
in the company following the resolution of a long running dispute with his former
business partner.