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

 

UPDATE: F&P Appliances soars to 4-year high on takeover talk

UPDATE: F&P Appliances soars to 4-year high after Haier signals takeover offer at premium

By Jonathan Underhill

Sept. 10 (BusinessDesk) – Shares of Fisher & Paykel Appliances soared 40 percent to the highest level in almost four years after one-fifth shareholder Haier of China indicated it may offer to buy the whole company at a premium and approached three other major investors.

The stock jumped 25 cents to $1 on the NZX, driving up the market value of the company by $181 million to $724 million. No price was given for the possible takeover, which Auckland-based F&P Appliances said would represent a premium to the 75 cents the stock last traded at before the announcement. It was described as a potential cash offer subject to conditions.

“They have indicated an expression of interest, done some limited due diligence and have been engaging with key shareholders,” chairman Keith Turner told BusinessDesk. “It signals serious intent of making a share offer.”

He declined to reveal Haier’s indicative price, saying the company wasn’t privy to conversations Haier had with other shareholders over the weekend and doesn’t currently have an offer on the table. The company didn’t have its shares halted from trading because it couldn’t say when, if at all, an offer would be made.

Haier has asked to undertake limited commercial and financial due diligence and the target company subsequently provided an extract from its five-year strategic plan. That was released today after Haier advised F&P Appliances that was approaching the company’s three other largest shareholders.

Among the F&P's biggest shareholders is Orbis Investment Management with 17 percent, Accident Compensation Corp with 7.5 percent, and AMP Capital Investors with 5.2 percent, which would bring Haier within reach of a 50 percent controlling stake.

The strategic review gives a forecast for 2013 capital expenditure of about $42 million while net debt will be “well below the $65 million as at March 31 this year, excluding the finance business.

The Chinese company injected much-needed equity in F&P Appliances as part of a $200 million rights issue in 2009 when the New Zealand company was forced to raise funds to repay bank debt. Since then, the local company has taken over distribution of Haier products in Australia.

The company reiterated its forecasts given in August for full-year operating earnings before interest and tax would be $70 million to $78 million, made up of ebit from Appliances’ of between $35 million and $40 million and earnings from Finance of $35 million and $38 million.

The company’s strategic review shows a concerted push to monetise licensing of its technology including its direct drive motors and compressors.

It gave a 2017 target for earnings in North America rising to US$20 million on an ebit basis from about US$1 million in 2012.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime Union: Deepening Supply Chain Crisis Requires Action

Maritime Union of New Zealand National Secretary Craig Harrison says the global COVID-19 pandemic exposed pre-existing weaknesses in our logistics sector, and created enormous problems... More>>



Air New Zealand: Employees Recognised With $1,000 Share Award

The efforts Air New Zealand employees made during one of the airline’s toughest years will be recognised via an award of $1,000 worth of company shares to all permanent employees... More>>

Consumer NZ: Bank Complaints On The Rise, Survey Shows

Nearly one in five Kiwis had a problem with their bank in the past year, Consumer NZ’s latest satisfaction survey finds. Consumer NZ chief executive Jon Duffy said the number of bank customers reporting problems had jumped to 18%, up from 11% in 2020... More>>

Mercury: Enters Into Binding Agreements To Acquire Trustpower’s Retail Business

Mercury NZ Limited (Mercury) has announced that it has entered into binding agreements with Trustpower Limited (Trustpower, NZX:TPW) to acquire Trustpower’s retail business for NZ$441 million... More>>

ALSO:


ASB: New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions

New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution... More>>


Stats NZ: GDP Climbs 1.6 Percent In March 2021 Quarter Following December Dip

Gross domestic product (GDP) rose by 1.6 percent in the March 2021 quarter, following a 1.0 percent fall in the December 2020 quarter, Stats NZ said today. "After an easing of economic activity in the December quarter, we’ve seen broad-based growth in the first quarter of 2021... More>>