Sharechat Logo

Comvita touted as potential bidder for Manuka Health company

Monday 30th July 2018

Text too small?

Comvita, the NZX-listed manuka honey company, declined to comment on whether it is interested in making a bid for honey company Manuka Health New Zealand which has reportedly been put up for sale by its Australian owner Pacific Equity Partners.

The Australian newspaper suggested Comvita or its largest shareholder China Resources Ng Fung as possible buyers of Manuka Health, which was put on the market about six weeks ago for more than A$200 million by PEP and advisers Luminis Partners. Manuka Health was reportedly sold to the Australian private equity firm in 2015 for $110 million.

A Comvita spokeswoman said that as listed company, it was unable to comment on its interest or not in any potential acquisitions without first updating the market. While naming Comvita as a potential buyer, the Australian newspaper also said "the current vibe" was that it was not interested in buying Manuka Health.

Comvita shares last traded at $5.80, and have shed 30 percent of their value this year, taking its market capitalisation down to $264 million, after poor honey harvests hurt earnings. Demand for Manuka honey has soared in recent years on the back of its antibacterial properties and demand for natural health foods.

Other potential buyers for Manuka Health include Chinese private equity firm CDH Investments, which has a controlling stake in New Zealand vitamin brand Go Healthy; Chinese group Primavera which owns Australian vitamin group Vitaco; and global giant Unilever, according to Australian reports, although unidentified sources were cited saying some of those buyers were unlikely and potential Japanese buyers had shied away at the price tag.

Te Awamutu-based Manuka Health had revenue of $79.5 million and net profit of $3.5 million in the year ended June 30, 2017, according to its annual filing to the Companies Office. The company was founded in 2006 by Kerry Paul, with 78 percent of sales derived from exports.

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

Sydney house price downturn could dampen Auckland prices
RBNZ governor denies central bank exerted influence over CBLI creditors
December 12th Morning Report
Britain's Apax wins over Trade Me, matching rival $2.56B offer
NZ dollar holds near 15-month high vs pound as Brexit woes threaten May's leadership
MARKET CLOSE: NZ shares gain as defensive stocks find favour; Contact, Meridian rise
NZ dollar firm against greenback as risk appetite ticks up
Cleantech start-up Mint Innovation raises $5.2M to prepare for commercial deployment
BurgerFuel starts full strategic review of business
NorthWest hires lobbyist to solicit Vital Healthcare votes

IRG See IRG research reports