Sector News

Tegel Group gets $309 million buyout offer from Philippines poultry firm

April 26, 2018
Food & Drink

New Zealand’s Tegel Group Holdings Ltd said on Thursday it received a NZ$437.8 million ($309.44 million), or NZ$1.23 per share, takeover offer in cash from Philippines broiler complex operator Bounty Fresh Food Inc’s New Zealand unit.

The Bounty offer is at a 50 percent premium to the closing price of Tegel shares on Tuesday.

Bounty would pay an additional NZ$38,427 for the company’s performance rights shares, Tegel said in a statement, adding that it was also permitted to pay a dividend of NZ$0.041 per ordinary share before the offer closed.

“Independent directors consider it too early to comment on the draft offer at this time,” Tegel said.

“In particular, the independent directors do not yet have full details in respect of Bounty’s proposed strategy for Tegel, which is something we are focused on.”

Meanwhile, Bounty said Tegel’s majority shareholder Claris Investments Pte Ltd, which owns a 45 percent stake in the company, has already agreed to accept the offer.

In a separate filing with the New Zealand Stock Exchange, Claris Investments confirmed their acceptance of the offer.

By Rushil Dutta

Source: Reuters

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