PDU confirms suspension of negotiations with Westland Milk Products
The Provincial Development Unit (PDU) confirms it has suspended negotiations to conclude financing arrangements with Westland Milk Products Ltd (WMP).
This follows an announcement the co-operative has signed a conditional agreement to sell to Hongkong Jingang Trade Holding Co Ltd.
“The proposed sale means that a loan from the Provincial Growth Fund will not go ahead at this stage. If the sale is ultimately confirmed by shareholders then the loan will no longer be required by the company,” said Head of the Provincial Development Unit Robert Pigou.
“The process to negotiate funding from the PGF is robust, and in this case we have been mindful of the possibility the company would change hands.”
The PDU’s systems, processes and documentation reflects we are careful stewards of public money and always seek the best outcomes and to maximise investment from the PGF.
“This investment from the PGF was to accelerate WMP’s plan to segregate milk and produce higher value products. It would also retain milk processing on the West Coast and provide new jobs in the region,” Robert Pigou said.
Published: Mar 19, 2019