Turners & Growers takeover offer extended

Thursday 29th December 2011

Germany’s BayWa Aktiengesellschaft extended its takeover offer for Turners and Growers until Feb. 8 after a sluggish response from minority shareholders and to give New Zealand’s Overseas Investment Office time to clear the proposal.

BayWa launched its $1.85-a-share offer, valuing the target company at $216 million, on Dec. 9 having garnered agreement from Guinness Peat Group to sell its 63 percent stake. The German company has lifted its stake to 66 percent since then, according to a filing today.

Shares of Turners and Growers fell 1 cent to $1.78 on the NZX today. BayWa has approval for the deal from German Federal Cartel Office and is waiting for clearance from the OIO.

BayWa said last week it was willing to be the majority owner of the fruit and vegetable marketing company after a rival horticultural firm emerged with enough shares of the target company to block a full takeover.

Scales Corp, the apple processing company sold by South Canterbury Finance’s receivers, said it had bought 5.95 percent of Turners & Growers and had an option to buy a further 4.03 percent. Scales said it isn’t planning a bid of its own, supports the target company remaining NZX listed and wants to participate in any consolidation in the industry.

BusinessDesk.co.nz

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