The receivers of South Canterbury Finance are joining two other major shareholders in Dairy Holdings to market a controlling stake in the South Island dairy farm owner.
South Canterbury Finance's (SCF) 33.6% stake will be marketed in conjunction with a 24.99% stake owned by three investors from the United States and 3.9% owned by Humphrey Rolleston.
The latter two stakes have been on the market for two months and the new enlarged package will be offered for sale before Christmas.
A partner with receiver McGrathNicol, Kerry Downey, said it was the right time to combine the shares, and a controlling stake of 62.5% in Dairy Holdings would be attractive.
First NZ Capital will run the sale process in conjunction with Murray & Company, and Mr Downey said it was possible more than 62.5% would ultimately be sold should other shareholders wish to sell up.
"There is the opportunity for them to join the sale process we are undertaking, at any stage."
SCF bought its stake from Alan Hubbard's Southbury Group two years ago for $76 million.
Dairy Holdings owns 58 South Island dairy farms covering 14,201ha, milking 43,439 cows and producing about 15.1 million kg of milk solids.
It operates four autonomous wholly-owned subsidiaries: Dairy Farm Holdings, Clumber Farms, Livestock Holdings and West Coast (Dairy) Ltd.
Of those farms, 18 are run by 50:50 sharemilkers, 15 under lower-order sharemilking agreements, eight by contract milkers and 17 by the farm owner.
Milk is supplied to Fonterra and Westland Co-operative Dairy.
In addition, through Livestock Holdings, Dairy Holdings owns 14 grazing and dry stock properties covering 3800ha in Mid Canterbury, South Canterbury, West Otago and Northern Southland.
The directors of Dairy Holdings are South Canterbury businessmen Alan Pye and Alan Hubbard and Colin Armer, from Mount Maunganui.
Behind SCF, the second-largest shareholders are Mr Pye and Dale Armer, with equal shareholdings. Colin Armer, Little Cow Company LLC and Pals Plus LLC are next, all with equal shareholdings.
This is the country's second significant dairy farming business for sale, after the North Island Crafar family farms, which are in receivership.
Given the size of the Dairy Holdings stake, like the Crafar farms, it is likely to attract interest from overseas investors.
