Sharechat Logo

Cerebos offer for Comvita lapses after takeover stumbled on valuation

Friday 23rd December 2011

Text too small?

Cerebos’s $71.6 million takeover offer for Manuka honey products maker Comvita has lapsed after the Singapore-based company balked at the target’s independent valuation.

The $2.50-a-share offer closed yesterday and any acceptance forms will now be destroyed, Cerebos said in a statement. Cerebos Gregg’s chief executive George Crocker had said his company didn’t accept an independent valuation of Comvita of $3.40 to $4, based on forecast earnings.

Shares of Comvita soared when Cerebos first announced its offer in October at a price the company hadn’t traded at since May last year. The stock climbed as high as $2.95 in late November on hopes Cerebos would sweeten its proposal and talk that other parties were showing interest. It has since retreated to $2.50 again.

Comvita chairman Neil Craig had argued the proposal was opportunist, coming at a time when the company was emerging from a period of under-performance and with stronger prospects ahead.

Last week Craig said the company was “pleased that this takeover offer is now effectively behind us” as it had undervalued Comvita “by a very considerable margin.”

Cerebos New Zealand, the local unit of Singapore-listed Cerebos Pacific, has local brands including Caffe L’Affare coffee, Bisto gravies, and Raro drink powder. It had planned to delist Comvita if the takeover succeeded.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Comvita may not increase earnings in 2014 as higher honey prices bite, Craigs says
Comvita turned to a loss in first half, remains confident of increasing annual profit
Nasdaq-listed Derma Sciences takes 7.3 percent stake in Comvita in discounted placement
Comvita FY profit falls 10 percent , beating guidance, on honey shortage, rising costs
Comvita flags 15 percent fall in FY profit as expensive honey, supply shortages prompt downgrade
Comvita buys Aussie groves to expand olive extract output
Comvita first-half earnings fall 7.4% amid short supply
Comvita buys Whanganui-based Kiwi Honey for undisclosed sum
Comvita hits 5-yr high on early results from diabetes trial
Comvita to seek deeper pool for directors' fees at AGM