infonews.co.nz
INDEX
FINANCE

ANZ National Bank to Invest in Dairy Equity Manager

Mediacom

Wednesday 6 June 2007, 4:04PM

By Mediacom

534 views

Listed investment company Dairy Equity Limited (DEL) today announced that ANZ National Bank has entered into a Heads of Agreement to buy a 50% shareholding in its manager, DEL Management Limited

DEL chairman, Peter Jensen, says that DEL views having ANZ National Bank as a shareholder in DEL Management as extremely positive, and a logical development given ANZ National Bank’s market share of the rural banking market in New Zealand and the existing referral arrangement between DEL and ANZ National.

“We have already experienced a significant increase in our rate of enquiry and investment since entering into a referral arrangement with ANZ National in March this year.

“DEL provides a market for dairy farmers who wish to reallocate some or all of their capital in their Fonterra Fair Value Shares whilst remaining Fonterra shareholders. We regard ANZ National’s decision to invest in DEL Management, as a further endorsement of both our product and the importance ANZ National places on being able to offer its dairy farming clients a full suite of alternatives when those clients need to either put additional capital into or take capital out of their businesses” Peter Jensen said.

DEL Management is currently owned 50% by each of ABN AMRO Craigs and GT & Company. ANZ National Bank is purchasing the stake held by GT & Company.

“While it is appropriate that GT & Co is selling their shares now that it is no longer involved in the day to day running of DEL Management, we will maintain a constructive ongoing association via a referral agreement currently being finalised.” said Peter Jensen.