Turners & Growers appoint KordaMentha to assess German takeover bid

Wednesday 16th November 2011 2 Comments

Turners & Growers, the fruit marketer controlled by Guinness Peat Group, has appointed independent advisor KordaMentha to assess on a $216.5 million takeover bid from Germany’s BayWa AG.

The German company has locked up GPG’s 63.5 percent stake for $137.4 million, ensuring the bid for at least half of T&G is met, and KordaMentha will look at the merits of the $1.85 a share offer as the independent adviser.

BayWa is paying an 8.8 percent premium to what the stock was trading at immediately before the announcement was made, and is contingent on regulatory approvals in both New Zealand and Germany.

The German company will delist T&G if it secures 90 percent of acceptances that would enable it to force a compulsory sale for the rest of the company, but the deal doesn’t rely on a full takeover.

The shares recently traded at $1.83, 1.1 percent below the German offer. That values the company at $214.1 million based on the market capitalisation.

(Business Desk)

BusinessDesk.co.nz

Comments from our readers

On 23 November 2011 at 8:59 am Jay said:

Yes ANOTHER New-Zealand industry being sold way under its "real" value overseas like watties and countless other companies were.NZers may soon be paying Germans for the "priviledge"of buying & eating their OWN VEGES.

On 23 November 2011 at 11:06 am vincent petry said:

Turners net tangible assets total around $2.4 per share.The directors including Tony Gibbs have sat on their hands and not disposed of surplus assetsnot producing income before this sale was agreed .