OIO approves Bounty Holdings bid to buy Tegel Group, offer now unconditional
By Rebecca Howard
Sept. 24 (BusinessDesk) - The Overseas Investment Office has approved a bid by Bounty Holdings New Zealand to buy Tegel Group Holdings, and the offer has been declared unconditional.
The Philippines poultry company owned 13 percent of NZX-listed Tegel when formally lodging the $1.23 per share takeover in May. This effectively secured it control through a lock-up arrangement with cornerstone shareholder Affinity Equity Partners, which has a 45 percent stake.
The offer got the Tegel board's blessing in June. In late August, Bounty crossed the 90 percent threshold, allowing it to trigger mop-up provisions under the Takeovers Code and force remaining shareholders to sell.
Bounty wants to use its own sales and distribution channels to sell Tegel products to boost exports to the Philippines and Indonesia and to supplement export growth into Asia.
Tegel Group processes approximately 58 million birds per year in Auckland, Christchurch and New Plymouth. It is New Zealand’s leading poultry producer, processing approximately half of New Zealand’s poultry and manufactures and markets a range of other processed meat products.