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

 

Statistics: Business Research And Development Up 29 Percent

Computer services and machinery manufacturing firms led the way in an almost 30 percent lift in business spending on research and development (R&D) in 2016, Stats NZ said today. Businesses spent $1.6 billion on R&D in 2016, up $356 million (29 percent) from 2014. More>>

ALSO:

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news