Farmer shareholders have voted for the second time in favour of the deal between Chinese company Shanghai Maling and Silver Fern Farms.

In October last year farmers gave the go-ahead for a $261 million investment into New Zealand's largest meat processor, although it still waits the stamp of approval from the Overseas Investment Office and the Government.

On Friday, in what Silver Fern Farms management described as a "strong majority" of 80.4 per cent of votes in favour, farmers cast their lot for the tie-up with the Chinese company.

New Zealand largest meat processor, Silver Fern Farms

Canterbury high country runholder and Englishman John Shrimpton, and Blair Gallagher, who led the group of dissident shareholders, conceded defeat after a six-month campaign.

Shrimpton, who had pledged to shake the hand of SFF chairman Rob Hewett if he failed in his bid to stop the deal, did just that.

The group had charged that because the agreement was a major transaction, 75 per cent of eligible shareholders had to vote in favour in last October's election. It forced a special meeting to vote again. Legally, Silver Fern Farms was compelled to hold it, even though any decision will not be binding.

Shanghai Maling president Weiping Shen and Silver Fern Farms chairman Rob Hewett discuss the deal last year.

Supporters of the deal describe it as a game changer for the industry, potentially opening up marketing opportunities by using the Chinese company's connections and expertise.

Opponents say it would remove the company's ability to determine its own future, and turn over majority ownership into foreign hands.

Hewett said the co-operative would "rather not have gone through with the vote in terms of the time, money and effort" it took up. He always knew the deal would have majority support, but was unsure about the 75 per cent threshold.

Hewett said the partnership would create a strong Silver Fern Farms.

"This partnership will enable us to generate higher, sustainable returns for our shareholders.

"Shareholders have again made it clear they want progress for their company. They want meaningful change and are genuinely excited about the prospects presented through this significant investment and partnership with Shanghai Maling."

"The Board has strongly disagreed with the negative stance on the transaction taken by Messrs Shrimpton and Gallagher. They have caused significant disruption and their actions have been damaging to the company. Their allegations have proven to be entirely unfounded. Independent reviews by both the Financial Markets Authority and the Registrar of Companies have found no issue with the information provided to shareholders in October 2015 or the actions of the directors," Hewett said.

Chief executive Dean Hamilton said the OIO was still on track with its investigation, and the company was hoping it would meet the September 30 deadline.

"We remain confident that we will achieve OIO approval prior to September 30, and proceed to complete the transaction by January 4, 2017 as previously announced.

"The clear message from the voters is to get on with it, and realise this opportunity ahead of us," Hamilton said.

2610 shareholders voted representing 62.15 per cent of eligible votes.

Silver Fern Farms is a co-operative and New Zealand's largest meat processor with a turnover of $2.4 billion. Last year it made a profit of $24.9m.



