The proposed merger of New Zealand kiwifruit players Seeka and Satara, a deal apparently driven by the ongoing threat of Psa in the country, is far from certain to gain approval when Satara shareholders vote on the move on Friday (2 December).
According to Business Day, the deal is currently 'hanging in the balance', with Satara chairman Hendrik Pieters not confident that his 200 cooperative shareholders will support the deal this week – particularly after shareholders continued to express mixed feelings over the deal at various meetings this week.
Pieters again expressed his desire to see the merger through, given the turmoil resulting from the spread of Psa and the havoc it has caused in kiwifruit orchards in many growing regions, but he conceded that he could not make a call on which way the vote would go at 3pm on Friday.
The value of shares and the differing cultures of Seeka and Satara were among the shareholders' concerns, Pieters noted.
Michael Franks, chief executive of Seeka, agreed that the merger was 'in the balance a bit', Business Day reported.
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