MEDIA RELEASE 14 DEC 10 - Intention to Sell 62.5% of Dairy Holdings Limited

Kerryn Downey, the Receiver for South Canterbury Finance Limited, announced today that he had reached an agreement with four other shareholders in Dairy Holdings Limited to jointly market for sale a combined 62.5% shareholding in the company.

The 62.5% shareholding in Dairy Holdings is comprised of:

• the 33.6% shareholding owned by South Canterbury Finance (in receivership)
• the 24.99% shareholding owned by three US investors; and
• the 3.9% shareholding owned by Humphry Rolleston.

The sale process, which will commence before Christmas, will build on the process undertaken over the past two months by the US/Rolleston interests for their combined 28.9% shareholding.

Humphry Rolleston said that the sale process conducted by Murray & Company had attracted strong interest from potential buyers, but that the opportunity to sell a majority stake in Dairy Holdings was likely to be more attractive to a broader range of parties.

Kerryn Downey noted that it was possible that a shareholding in excess of 62.5% could ultimately be sold depending upon whether Colin Armer and Alan Pye, both directors of Dairy Holdings, also wish to sell their shares in Dairy Holdings.  “There is the opportunity for them to join the sale process we are undertaking at any stage,” said Downey.

The Receivers have appointed First NZ Capital to act with Murray & Company as joint sale advisers for the sale of the combined shareholding in Dairy Holdings Ltd.