Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Cash Offer Provides Certainty to Shareholders, Says Haier

4 October 2012

MEDIA RELEASE

Cash Offer Provides Certainty to Shareholders, Says Haier

Haier Group says Fisher & Paykel Appliances Holdings Ltd (Fisher & Paykel Appliances) shareholders will need to decide between the certainty of Haier's offer or taking a significant risk on the achievability of the Independent Adviser’s valuation range.

Haier Group has made a cash offer of NZ$1.20 per share through subsidiary Haier New Zealand Investment Holding Company Ltd (Haier). Haier continues to believe its offer represents excellent value for shareholders:

• The offer price is a significant 60% premium to Fisher & Paykel Appliances’ share price as at the close of trading on Friday 7 September, which was the last trading day before the market was advised of the potential takeover offer from Haier.

• The offer price is a 91% premium to the volume weighted average trading price over the three month period up to and including Friday 7 September.

• If the offer is successful, shareholders will receive a certain cash payment.

In contrast, Haier believes there are significant risks in the achievability of the Independent Adviser's valuation range announced today.

Haier believes the Independent Adviser has placed substantial weight on Fisher & Paykel Appliances’ five year strategic plan in determining its valuation. “This is appropriate and we also considered this information when determining our offer,” said Mr Liang Haishan, Chairman of Haier New Zealand Investment Holding Company Ltd and President of Haier White Goods Group.

“There is a high degree of risk regarding the implementation of the five year strategic plan and achievement of the goals set out in it. In determining the offer price we have applied our significant, first-hand knowledge of Fisher & Paykel Appliances and the highly competitive global white goods sector, together with a consideration of the economic environments Fisher & Paykel Appliances operates in.”

"We assume that the Independent Board of Fisher & Paykel Appliances, and their financial advisers, also considered the risks in implementing the five year strategic plan when they gave their conditional support to our offer of NZ$1.20."

Mr Liang also noted that Allan Gray Australia Pty Ltd, which is the largest shareholder after Haier Group and holds 17.46% of Fisher & Paykel Appliances shares, has entered into an irrevocable agreement to accept the offer. This represents a strong endorsement of the value of the offer.

Haier believes the Independent Adviser’s valuation range is overly optimistic and does not adequately take into account the risks contained in the five year strategic plan.

“Shareholders will need to decide whether they are willing to take the significant risk inherent in Fisher & Paykel Appliances attaining its five year strategic plan, or accept our offer which, if successful, provides shareholders a certain cash payment and is just 6.7% lower than the bottom end of the Independent Adviser’s valuation range.” said Mr Liang, noting that if Haier’s offer for Fisher & Paykel Appliances does not succeed, or if Haier does not receive sufficient acceptances to enable it to invoke the compulsory acquisition provisions of the Takeovers Code, there is likely to be a large decline in the share price from current levels.

Prior to the announcement of Haier’s offer, the Fisher & Paykel Appliances’ share price had been below the offer price since 22 September 2008 and has traded as low as NZ$0.33 in the past 12 months.

Mr Liang noted that Haier and Fisher & Paykel Appliances have had a cooperative relationship for a number of years, extending beyond 2009 when Haier supported Fisher & Paykel Appliances’ recapitalisation.

Haier is committed to supporting a strong and vibrant New Zealand-based business going forward, based on that history of cooperation.

This media release contains statements of Haier’s current intentions. Haier reserves the right to make changes to these intentions, but would only do so after consultation with the Board of Fisher & Paykel Appliances.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news