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

 

Eastern Equities MBO Offer Raised

Chairman of Eastern Equities, Peter Roebuck, today indicated the joint venture management buy out (MBO) would raise its bid price from 62 cents to 70 cents a share.

Following the independent report by Grant Samuel who considered the offer to be fair, the bid has the support of Eastern Equities independent directors who are recommending that shareholders accept the offer. The independent directors have confirmed that they intend to sell their share holdings into the takeover offer.

Last month Mr Roebuck, and Eastern Equities chief executive Murray Boyte, formed a joint venture with AMP Asset Management to bid for the shares of the listed Hawkes Bay transport contracting and horticultural company.

"Having considered the report commissioned by the independent directors, we are prepared to increase our bid to 70 cents. Although this is at the lower end of the report's fair value range, we feel the offer is generous," Mr Roebuck said.

"We have a more pessimistic view of the likely returns from apples over the next few years. Using the report's methodology, just a $1 reduction in the forecast price per carton reduces the company's fair value by almost eight cents per share. This is worrying when viewed against past volatility in apple prices and the uncertainty associated with industry deregulation."

"We also believe Eastern Equities needs significant capital expenditure over the next few years to consolidate and expand its market presence."

"The uncertain fruit market together with the need for capital have a considerable impact on our assessment of the company's value."

The increased bid represents a premium in excess of 50% of the weighted average share price (46.5 cents) in the period between the last annual profit figures and the announcement of the bid. This bid will not be increased. A notice was lodged with the New Zealand Stock Exchange, and the offer will be mailed to the company's shareholders today.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Industry Report: Growing Interactive Sector Wants Screen Grants

Introducing a coordinated plan that invests in emerging talent and allows interactive media to access existing screen industry programmes would create hundreds of hi-tech and creative industry jobs. More>>

ALSO:

Ground Rules: Government Moves To Protect Best Growing Land

“Continuing to grow food in the volumes and quality we have come to expect depends on the availability of land and the quality of the soil. Once productive land is built on, we can’t use it for food production, which is why we need to act now.” More>>

ALSO:

Royal Society: Calls For Overhaul Of Gene-Technology Regulations

An expert panel considering the implications of new technologies that allow much more controlled and precise ‘editing’ of genes, has concluded it’s time for an overhaul of the regulations and that there’s an urgent need for wide discussion and debate about gene editing... More>>

ALSO:

Retail: Card Spending Dips In July

Seasonally-adjusted electronic card spending dipped in July by 0.1 percent after being flat in June, according to Stats NZ. Economists had expected a 0.5 percent lift, according to the median in a Bloomberg poll. More>>

ALSO:

Product Stewardship: Govt Takes More Action To Reduce Waste

The Government is proposing a new way to deal with environmentally harmful products before they become waste, including plastic packing and bottles, as part of a wider plan to reduce the amount of rubbish ending up in landfills. More>>

ALSO:

Earnings Update: Fonterra Sees Up To $675m Loss On Writedowns

“While the Co-op’s FY19 underlying earnings range is within the current guidance of 10-15 cents per share, when you take into consideration these likely write-downs, we expect to make a reported loss of $590-675 million this year, which is a 37 to 42 cent loss per share." More>>

ALSO: