German business BayWa AG is purchasing a majority shareholding in New Zealand produce exporter Turners & Growers Limited.

The buyout is of the holdings of T&G majority shareholder London based Guinness Peat Group Plc.

As required by New Zealand takeover regulations, the acquisition will be made as part of a takeover offer to acquire up to 100 per cent of the issued shares of T&G.

BayWa has agreed the purchase of GPG´s 63.46 per cent stake at a cash price of NZ$1.85 per share and will make a takeover offer to all individual shareholders on the same terms.

The offer price represents a nine per cent premium to the closing T&G share price of NZ$1.70 on November 9 and a 22 per cent premium to the one month VWAP prior to GPG's announcement of a realisation of its investment portfolio on February 11.

The transaction is conditional on approval from the German Federal Cartel Office and the New Zealand Overseas Investment Office.

BayWa is being advised by Macquarie Capital, Bell Gully and Ernst & Young.

BayWa intends to continue to run T&G substantially as a standalone entity and support the current management in their plans to grow the business.

One of BayWa's key focuses will be increasing returns to apple growers through improved operational efficiencies, supply chain management and marketing processes.

BayWa has strong relationships with growers in Germany and will look to utilise this experience to further build on T&G's relationships with growers.