A trading halt was requested this week on the Unlisted exchange where it trades, pending an announcement by the meat processing company, and it has since been lifted.
Shares last traded at $1.30 and the offer price was $3 a share, payable in cash, and conditional on Southern Lamb Investments receiving more than 50% of shares.
An independent committee of directors comprising chairwoman Sarah Brown and Melvin Sutton would consider the proposed full takeover offer.
It would begin preparation of a target company statement and it had also appointed Campbell MacPherson to prepare an independent adviser’s report on the merits of the offer.
In the 12 months to June 30, 2021, the business generated a profit of $5.3 million before tax, an increase on the previous year’s $4.2 million.
Profitability has grown by 20% on 2020 (which was a 15-month year). Cashflow has stayed strong at positive $10.7 million, borrowings had decreased by $6.4 million and total shareholders’ equity was up by $2.7 million (10%).
At the time, Mr O’Donnell said he was pleased to deliver a good result for shareholders. Blue Sky’s balance sheet was looking positive, allowing the company to look at future reinvestment.
"Blue Sky has ever-increasing potential and with our financial outlook we’ll be able to invest in areas of the business that will help us reach this potential."
Mr O’Donnell, a prominent Invercargill businessman, has spearheaded the $160 million redevelopment of Invercargill’s CBD, a project which has been cited as having the potential to boost Southland’s real GDP by about $48 million a year. He is involved with H.W. Richardson Group, the family business of his wife Jocelyn.
Mr Lowe is also a well-known agribusinessman and managing director of Hawkes Bay-based Lowe Corporation.
In March 2017, NZ Binxi (Oamaru) Foods, a subsidiary of China-based Heilongjiang Binxi Cattle Industry Co, backed out of its $25.4 million takeover of Blue Sky.
Binxi had built its stake in Blue Sky (now known as Blue Sky Pastures) in 2016, becoming the third-largest shareholder behind Lowe Corp and H.W. Richardson Group.
