Friday 27th January 2017
|Text too small?|
NZ Binxi (Oamaru) Foods, a subsidiary of China-based Heilongjiang Binxi Cattle Industry Co, won't budge on its $2.20 per share takeover price for Invercargill meat processor Blue Sky Meats.
Last week, Blue Sky's directors told shareholders they want NZ Binxi to lift its offer by 30 cents per share before they'll recommend it after a strategic review outlined what the meat processor needs to do to drive profit growth. The offer for 86.5 percent of Blue Sky that NZ Binxi doesn't own closes on Feb. 18 and was at the top end of independent adviser Campbell MacPherson's $1.93 and $2.21 valuation range. It said it won't increase its current bid and has told Blue Sky's directors.
"NZ Binxi has received a good volume of acceptances for its offer for Blue Sky Meats to date but would need to see acceptances continuing to flow if the offer is to succeed," it said in a statement. "We have fully considered all aspects of the business, the competitive environment, historical and current financial results, overseas market conditions and future capital required to operate the improved business performance."
Binxi Cattle Group built its stake in Blue Sky last year, becoming the third-largest shareholder behind Lowe Corp and HW Richardson Group. It operates a vertically integrated beef business in China, owns New Zealand meat processor Lean Meats Oamaru and wants to acquire Blue Sky to grow its New Zealand Binxi business.
The offer is conditional on it receiving acceptances for at least 90 percent of Blue Sky shares, which will enable it to compulsorily acquire all of the remaining shares. It can waive that condition, but can't declare the offer unconditional unless it receives acceptance taking its holding to more than 50 percent. The offer is also conditional on the Chinese company obtaining consent from New Zealand's Overseas Investment Office.
Blue Sky shares last traded at $1.30 on the Unlisted platform, valuing the company at $15 million.
No comments yet
MARKET CLOSE: NZ shares fall as raft of earnings loom; Heartland, Fletcher drop, Sky TV, Air NZ gain
NZ dollar falls vs greenback, Aussie as investors seek clues over diverging rate tracks
NZ's housing-related imbalances set to peak in 2018, S&P Global says
Bapcor's ex-Hellaby auto unit still exceeding expectations
KiwiRail operating earnings rise despite Kaikoura line outage
Used car import body says 'short-term' hit from MPI's stink bug strategy worth it
CBL's European subsidiary fights Irish central bank ban on new business
ASX-listed Super Retail Group pays $144M for Macpac, more than twice the 2015 price
Mark Tume appointed chair of Ngāi Tahu Holdings board
ANZ extends Veritas' debt for a third time, seeking shareholder approval to sell Mad Butcher