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

 

Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>

Sci-Tech: Perseverance Rover Lands On Mars – Expert Reaction

NASA has landed a car-sized rover on the red planet to search for signs of past life. The vehicle has more instruments than the four rovers preceding it, and it’s also carrying gear that could help pave the way for human exploration of Mars. The ... More>>

ALSO:


ASB: Quarterly Economic Forecast Predicts OCR Hike As Early As August 2022

Predictions of interest rate rises have been brought forward 12 months in ASB’s latest Quarterly Economic Forecast. Chief Economist Nick Tuffley now expects the RBNZ to begin raising the OCR from its current level of 0.25% as early as August ... More>>

ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>

OECD: Unemployment Rate Stable At 6.9% In December 2020, 1.7 Percentage Points Higher Than In February 2020

The OECD area unemployment rate was stable at 6.9% in December 2020, remaining 1.7 percentage points above the level observed in February 2020, before the COVID-19 pandemic hit the labour market. [1] In December, the unemployment rate was also stable ... More>>

Stats NZ: Unemployment Drops To 4.9 Percent As Employment Picks Up

The seasonally adjusted unemployment rate dropped to 4.9 percent in the December 2020 quarter, from 5.3 percent in the September 2020 quarter, Stats NZ said today. Last quarter’s unemployment rate of 5.3 percent followed the largest increase observed ... More>>