The Government has approved the offer Chinese firm Shanghai Maling Aquarius' to buy a 50 percent Dunedin cooperative Silver Fern Farms.
"Potentially very good," said Prime Minister John Key.
"It's a very significant injection of capital, this is a company that has long had a large amount of debt and has been under pressure."
The Chinese company, partly owned by Bright Foods, submitted a bid on Tuesday to inject $ 261 million into capital than half of the largest exporter of meat in the country.
The total deal will be worth approximately $ 331 million.
Mr. Key says it's a vote of confidence in the industry in New Zealand Silver Fern Farms and give an opportunity to improve their access to the huge Chinese market.
It was announced as a game changer Silver Fern Farms by President Rob Hewett with the board unanimously recommend shareholders take the deal.
"I do not think there is any doubt of our strategy is the right strategy," he said.
"We will be released and the capital they are providing to be able to do that."
As part of the agreement, the Chinese firm Silver Fern Farms help eliminate all your debt while providing more investments to strengthen its balance sheet.
"At year end we will have no debt, no money in the bank," he said.
"It will turbocharge our China strategy, no doubt about that.
"We've had comments made about us in the market, this should shut them up."
As a sweetener, a special dividend of 30 cents per share be paid to shareholders.
The company also outlined plans to return half of its annual net profit to shareholders through dividends and bonuses.
Shanghai Maling Aquarius manufactures and sells canned foods, bottled water, flavor, frozen food, and other related to more than 800 supermarkets across China products.
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