Turners and Growers face $21 million write down of assets

By Nick Gray

Jan 20 (BusinessDesk) - Turners and Growers have announced they are set to write down approximately $21 million of assets for the 2011 financial year, reflecting tough times for kiwifruit growers and the extinction of tax losses caused by the company’s takeover by German company BayWa.

Reflected in the writedown is the impact of the kiwifruit disease PSA, poor grower returns and global economic uncertainty, said T & G chairman, Rob Campbell in a statement to shareholders.

T & G also have to write off a deferred tax asset of approximately $8 million, as a result of the takeover by German company BayWa, which launched a $1.85-a-share offer, valuing the target company at $216 million, on Dec. 9 having garnered agreement from Guinness Peat Group to sell its 63 percent stake.

The offer has since been extended until Feb. 8 after a sluggish response from minority shareholders and to give New Zealand’s Overseas Investment Office time to clear the proposal.

T&G are expected to record a loss of between $17 and $19 million for the 2011 year.

Its shares showed no change today, remaining at $1.78, where they have sat since Dec 29.



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