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

 


Goodman Fielder board agrees to slimmed down offer

Goodman Fielder board agrees to slimmed down offer from Wilmar, First Pacific

By Jonathan Underhill

July 2 (BusinessDesk) - Goodman Fielder's directors have given support to a reduced takeover proposal from Singapore-based Wilmar International and Hong Kong-listed investment firm First Pacific Co, who lowered their price by about 3.6 percent after scrutinising the food maker's accounts.

Wilmar and First Pacific are now offering 67.5 Australian cents a share via a scheme of arrangement for 100 percent of Goodman Fielder, down from the 70 cent level Goodman's board unanimously supported in May. At the same time, Goodman quantified an impairment charge of A$300 million to A$400 million for the year ended June 30, largely against its Australian and New Zealand baking business. The company said it would remain within its lending covenants after the charge.

The scheme "provides an opportunity to further leverage our strong consumer food brands in Australia and New Zealand to grow our business across the Asian region," chairman Steve Gregg said in a statement.

A scheme of arrangement means Wilmar, the world's largest palm oil processor, and First Pacific need approval from the majority of shareholders who vote at a special meeting likely to be held in November, and at least 75 percent of total shares voted. That's a lower threshold than an outright takeover, where a bidder would need to get to 90 percent acceptance before they could compulsorily acquire the rest of the stock.

Goodman must now appoint an independent adviser to assess whether the scheme is fair, and that report will be included in a scheme booklet to be released in September, it said.

Under the scheme, Goodman will pay a final dividend of 1 Australian cent a share for 2014. Goodman shares last traded at 68 Australian cents on the ASX before being halted for today's announcement. The trading halt has since been lifted.

The shares soared on April 28, when the Asian entities initially offered 65 Australian cents, having tumbled by as much at the start of the month when Goodman cut its guidance. Goodman’s board knocked back that 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.

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

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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