Oregon Group takes majority voting control of NZ King Salmon

What's the deal? Oregon Group is set to gain majority voting control of 50.68% in New Zealand King SalmonDealroom has a profile for this one. Try Dealroom → (ASX:NZK) after existing shareholder China Resources Asset Management agreed to sell its entire 9.87% stake. The buyout value was undisclosed.

How is it structured? China Resources Asset Management will exit by selling 53,125,934 shares in equal portions to Oregon Group and Porus Holdings Trust at US$0.15 per share. A separate voting deed gives Oregon control over Porus Holdings Trust's voting rights, lifting Oregon's total voting power past the halfway mark.

What's the endgame? Oregon said the move provides certainty to consolidate New Zealand King Salmon for accounting purposes. "As a long-standing NZK shareholder, Oregon is pleased to increase its investment in the company," said Oregon Group and New Zealand King Salmon director Chiong Yong Tiong.

What could go wrong? The deal remains subject to shareholder, Takeovers Panel, and Overseas Investment Office approvals. NZK will hold a shareholder meeting where independent directors plan to deliver an Independent Adviser's Report, with Oregon covering the reasonable external costs.

The signal: The transaction concentrates control of a New Zealand salmon producer in a single shareholder's hands, consolidating ownership as a Chinese investor exits. The share price was unchanged at $0.20 following the announcement.

Read more: grafa.com

Image credit: Sam Beebe