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Poultry producer Tegel delists from ASX

New Zealand’s pTegeloultry business Tegel delisted from the ASX yesterday following the acquisition by Philippines-owned poultry company Bounty Fresh.

Trading in Tegel will be suspended on the NZX and ASX after 8 October. Last week, Bounty Fresh notified companies and all its outstanding shareholders that it was exercising its compulsory acquisition rights under the Takeovers Code. Under these provisions, Bounty Fresh is allowed to acquire all the outstanding shares in Tegel that it still doesn’t have any cloak over.

Bounty Fresh crossed the 90 per cent threshold that was needed for a compulsory takeover of Tegel in August, offering $1.23 a share, valuing the Kiwi poultry group at $437.8 million. The company declared the takeover unconditional last month after the Overseas Investment Office signed off on the deal, according to NZ Herald.

The takeover bid happened in June when the Filipino poultry business secured an initial 45 per cent stake from Affinity Equity Partners, worth about $197 million. Poultry business Tegel’s public offer was lifted to about $284 million, wherein $132 million was allocated to repay bank debt.

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