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

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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