Seeka Sells Northland Orchards

19 October 2018

Seeka Sells Northland Orchards
Seeka Limited [NZX:SEK] advises that it has entered into conditional
agreements to sell five kiwifruit orchards of its Northland portfolio, which were
offered for sale in August. Four of the orchards were purchased from Turners
and Growers Horticulture Limited as part of Seeka’s acquisition which was
announced on 20 April 2018. Seeka has an option to purchase the fifth orchard
and that option has been exercised.
The agreements include the purchasers entering into long term supply
contracts for each of the orchards with Seeka, and Seeka will manage the
orchards on behalf of the purchasers. The agreements are conditional on the
purchasers completing due diligence within 20 days. Settlement for three of
the orchards will occur upon subdivision – expected within the next 2-6
months. Settlement of the remaining two orchards is scheduled 10 days after
due diligence completion. The sales are not subject to Overseas Investment
Office or other regulatory approval.
The total sale value of $15.860m exceeds Seeka’s purchase price plus holding
costs for those orchards sold.
Seeka remains in negotiation for the sale of other orchards in its Northland
portfolio, and these will be announced as and when completed.
Ends.
For further information, please contact:
Michael Franks Seeka Chief Executive 021356516
Stuart McKinstry Seeka Chief Financial Officer 0212215583