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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news