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

 

Goodman Fielder Statement To Ernest Adams Holders

Goodman Fielder Statement To Ernest Adams Shareholders

First, some background. Who is Goodman Fielder?

Goodman Fielder is a Trans-Tasman company with a proud New Zealand heritage. The Goodman family started the company with a single bakery in Motueka in 1867 and built it into a global company with over NZ$3 billion in turnover.

Goodman Fielder has a strong commitment to building its business in New Zealand. It already has three consumer foods businesses here - Quality Bakers, Bluebird Foods and Meadow Lea Foods - which employ over 3,000 people, many in rural and regional areas.

New Zealand businesses which Goodman Fielder have acquired in recent years - Defiance Foods and Aspak - have been integrated into the company but their well know brands have been maintained and enhanced. The staff now work in a company with more opportunities. Why does Goodman Fielder want to buy Ernest Adams?

Goodman Fielder is the largest food company in Australasia and it sees opportunities to build the Ernest Adams brand in New Zealand, Australia and other overseas countries by selling its products through its domestic and global sales network.

Goodman Fielder has the size and scale to bring substantial skills and resources to develop the Ernest Adams products range, including research and development, manufacturing and logistics, and marketing.

Why should Ernest Adams shareholders accept the Goodman Fielder offer?

There are three reasons:

* the NZ$2.35 per share offer is within the fair value range estimated in the independent appraisal report commissioned by the independent directors of Ernest Adams;

* the offer is a substantial 39 per cent premium to recent share price levels. Current acceptances for over 82 per cent of Ernest Adams shares confirms the offer is compelling;

* there is no other offer for your shares, and the independent appraisal report warns that Ernest Adams shares may trade at a lower levels than they are today, at least initially, if the Goodman Fielder offer lapses. The offer is conditional on achieving 90 per cent shareholder acceptances.

In simple terms, Ernest Adams shareholders have the opportunity to either accept an extremely good offer by Goodman Fielder now, or take your chances that Ernest Adams will do much better in the future than it has in the past.

Goodman Fielder strongly believes you should accept its offer now.

Thank you for the opportunity to present our position to you directly.

Read to Ernest Adams shareholders at the 1999 Annual General Meeting on behalf of:

Doug McKay
Managing Director
Goodman Fielder Limited

ENDS....

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Official Cash Rate Unchanged At 1 Percent

The Monetary Policy Committee has decided to keep the Official Cash Rate (OCR) at 1.0 percent. Employment remains around its maximum sustainable level while inflation remains below the 2 percent target mid-point but within our target range... More>>

ALSO:

Food Prices: Avocados At Lowest Price In Almost Three Years

Avocados are at their cheapest average price since February 2017, with tomato, lettuce, and cucumber prices also falling, Stats NZ said today. More>>

Auckland Port Move: Cabinet Ministers Deliberate On Report

Cabinet ministers now have a copy of a report urging the government to move the Auckland port up north, but say no final decisions have been made. More>>

ALSO:

Toxicology Tests Planned: Dead Rats Washed Up On Beaches

As many as 600 rats washed up on Westport's North Beach over the weekend to the horror of locals. DOC said they may have been killed by a recent 1080 poison drop 140km away and washed down the Buller River after heavy rain battered the coast. More>>

ALSO: