Updated April 28, 2014 09:45:33
Struggling baker and food manufacturer Goodman Fielder has received a takeover bid from a Singapore-Hong Kong consortium.
The Australian company - maker of well known brands including Helga's, Wonder White, White Wings, Pampas, ETA, Praise, Meadow Lea and Cornwell's - has been approached by Singaporean food maker Wilmar International and Hong Kong-listed investment firm First Pacific Company with a 65 cent per share offer.
That is an 18 per cent premium over Goodman Fielder's last closing price of 55 cents on Thursday, and values the company at $1.27 billion.
The offer was made over the weekend, and Goodman Fielder says its board considered the proposal with its advisers - Credit Suisse and Herbert Smith Freehills - and also met with representatives from Wilmar and First Pacific.
However, the board has dismissed the current bid as 'opportunistic' saying it 'materially undervalues' Goodman Fielder, and is taking advantage of its current depressed share price.
The Australian company says it remains focussed on the execution of its strategic plan to turn around its struggling businesses, by laying off more staff to achieve $25 million in cost reductions, looking at ways to 'maximise the value' of its New Zealand dairy business and reviewing its daily bakery delivery model to deliver cost savings.
Topics:food-and-beverage, company-news, business-economics-and-finance, takeovers, australia, hong-kong, singapore
First posted April 28, 2014 09:27:44
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