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

 


Wilmar, First Pacific sweeten Goodman bid by A$100M

Wilmar, First Pacific sweeten Goodman bid by A$100M, won’t go higher without rival offer

By Paul McBeth

May 16 (BusinessDesk) - Singapore-based Wilmar International and Hong Kong-listed investment firm First Pacific Co have sweetened their takeover bid for Australasian food ingredients maker Goodman Fielder by A$100 million, but won’t go any higher without a rival offer.

Wilmar, the world’s biggest palm oil processor, and First Pacific are offering to pay 70 Australian cents a share, or A$1.37 billion, for full control of Goodman, up from a previous bid of 65 cents, or A$1.27 billion, they said in separate statements today. The bid is a 4.1 percent premium to Goodman’s last trading price of 67.2 Australian cents on the ASX. Goodman’s board has until Friday night to open its books for due diligence and recommend the deal. The dual-listed shares were halted in New Zealand and Australia yesterday.

“The company and First Pacific will not increase the price further in the absence of a competing proposal,” Wilmar said.

The Asian companies are seeking to buy Goodman through a scheme of arrangement, meaning they only need 75 percent support to take control rather than the 90 percent target for a hostile takeover.

Goodman’s board knocked back their earlier offer as opportunistic and materially undervaluing the company.

Wilmar bought a 10 percent stake in Goodman in 2012, and registered interest in the food ingredients maker’s assets which were up for sale at the time.

In February, Goodman 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 eroded 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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news