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

 


Wilmar, First Pacific make A$1.27B bid for Goodman Fielder

Wilmar, First Pacific make A$1.27 billion takeover bid for Goodman Fielder

April 28 (BusinessDesk) - Singapore-based Wilmar International and Hong Kong-listed investment firm First Pacific Co are seeking to takeover Goodman Fielder in a deal valuing Australasia’s biggest food ingredients maker at A$1.27 billion.

Wilmar, which owns 10.1 percent of Goodman Fielder, and First Pacific are offering 65 Australian cents a share, an 18 percent premium, in a non-binding conditional offer via a scheme of arrangement, Sydney-based Goodman Fielder said in a statement. Among those conditions were due diligence, unanimous recommendation by the Goodman Fielder board, approval from the Wilmar and First Pacific boards, and exclusivity in relation to the proposal.

“The board believes that the current proposal materially undervalues Goodman Fielder and is opportunistic,” the company said. “The board has advised Wilmar and First Pacific accordingly.”

The dual-listed shares have shed about two-thirds of their value over the past five years, closing at 55 Australian cents on the ASX last week. The stock is rated an average ‘hold’ based on 11 analyst recommendations compiled by Reuters, with a median target price of 54 Australian cents.

In February, Goodman Fielder forecast normalised annual earnings to be "broadly in line" with the previous year's A$185.6 million as soaring milk prices and intense competition in baking goods erodes profitability.

The maker of household brands including Vogel's bread, Meadowfresh milk and yoghurt, and Meadowlea butter and margarine has been cost cutting, restructuring and divesting over the past three years, to focus on its core brands and reduce debt.

“The board of Goodman Fielder remains focused on maximising shareholder value and will be constructive in relation to proposals which are consistent with this objective,” it said.

The company has appointed Credit Suisse as financial adviser and Herbert Smith Freehills as legal adviser.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news