Tegel agrees to Bounty takeover offer
The independent directors of New Zealand’s biggest poultry producer, Tegel Group, have urged shareholders to accept a $NZ438 million ($A405m) takeover bid from Bounty Fresh Food of the Philippines.
Bounty has so far achieved acceptances of its offer totalling 46.1 of Tegel shares. On top of the 16.3 per cent stake it already owned, that gives Bounty a total of more than 62 per cent, thereby satisfying the condition it obtain at least a 50 per cent stake in Tegel.
The acceptances include a 45 per cent stake held by Claris Investments, which is associated with Tegel chief executive officer Phil Hand and two non-executive directors.
Tegel chairman David Jackson on Tuesday said control of company – which is listed on both the Australian and New Zealand share markets – will pass to Bounty if the Bounty offer is declared unconditional. Jackson said Bounty’s offer price was fair and included a premium on Tegel’s historic trading price.
“The independent directors unanimously recommend that shareholders accept the Bounty offer,” Jackson said.
Tegel on Tuesday reported a net profit of $NZ26.1 million ($A24.1m) for the 52 weeks to April 29, 2018, down 23.7 per cent on the $NZ34.2 million net profit for the 53-week previous year.
Comparing 2018’s result to a similar 52-week period in 2017, net profit was down 17.7 per cent from $NZ31.7 million. Tegel’s bottom line was partly impacted by one-off restructuring costs and the disruption of some New Zealand processing operations as a result of ex-cyclone Gita in February.
The company said poultry volumes and revenue hit records in fiscal 2018, and its net profit was in line with guidance provided in March. Strong, growing demand for poultry as a meat protein in New Zealand, and an increasing population had driven revenue growth, it said. Tegel shares were 0.5 cents, or 0.5 per cent, higher at 1.09 on the ASX at 1319 AEST on Tuesday.