Talley's extends Affco offer deadline again

Thursday 2nd September 2010 1 Comment

Talley's Group has extended the deadline on its 37 cents-a-share offer to minority shareholders in listed meat processor Affco for a second time, but stressed that it will not budge on the price.

The deadline now expires on October 8.

In a statement today, the Nelson-based conglomerate said it may extended the deadline further but its 37 cents a share offer is final and "comfortably within the Independent Advisor's valuation range of 34 to 44.4 cents per share".

The extension comes after Affco shares briefly traded at 38 cents after Talley's initially extended their offer deadline on August 20, before falling back to 37 cents. Shares have largely remained range bound between 33 cents and 40 cents since October 2009.

Tally's offer to minority shareholders comes after it agreed to buy a 23.5% stake in Affco held by Toocooya Nominees, taking its holdings to 76.3%, triggering an automatic offer for all outstanding shares under the Takeovers Code. It has subsequently raised its shareholding to 78%.

Their offer is set against the advice of an independent committee commissioned by the Affco board, which recommended that shareholders retain their stakes unless they are looking for dividends in the short and medium term.

Affco, New Zealand's fourth largest meat processor and exporter, was established in 1904 and currently operates nine plants in the North Island and two plants in the South Island.

Shares Affco fell 2.6% yesterday to 36 cents.

Businesswire.co.nz

Comments from our readers

On 3 September 2010 at 11:53 am howard said:

It's a low ball but the boys don't like sharing so it's a catch 29.