Oceania Dairy has opened capital-raising for its $100 million dairy processing plant near Waimate in South Canterbury to investors - who must purchase shares worth a minium $520,000.
Oceania was offering local farmers and investors 23 million shares.
This represented about 88.5% of the company, which, depending on payment plans, would raise between $74.7 million and $87.7 million, chairman Keith Turner said in a statement yesterday.
"Although initial allotment of shares to farmers will be based on supply to the processing facility, the agreements will be independent of each other.
"However, once the initial allotment of shares has been made, there will be no link between investment and supply," which would "avoid the issues currently faced by co-operatives", Mr Turner said.
Ten million of the new shares at $3.25 are available to investors and other 13 million to farmers at $3.25 also, or for $4.25 per share through a deferred payment arrangement.
The offer is scheduled to close in mid-March.
Mr Turner said all investors had to subscribe to a minimum 160,000 shares; a minimum investment of $520,000.
• Oceania has applied for resource consents from Environment Canterbury and the Waimate District Council to build the plant, on a rural-zoned 5ha site at the corner of State Highway 1 and Cooneys Rd, about 4km north of Glenavy.
The application will be considered at a two-day hearing in Waimate on December 21-22.
