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PR Newswire
15-10-2011, 12:52 PM
From Biz Daily
Cerebos Bids US$57 million for New Zealand’s Comvita
Looking to diversify and expand its business, international food group Cerebos Limited Friday made a US$57.0-million (S$72.8-million) cash offer for New Zealand’s honey products company Comvita Ltd.
The group made an offer of NZ$2.50 for each Comvita share, a 19-per cent premium to Comvita’s closing price on Thursday.
“We can provide strategic assistance in sales and marketing in Asia where the Comvita brands are not yet well established,” said Trevor Kerr, Chairman of Cerebos Greggs, a subsidiary of the group.
He said Cerebos would look to invest in Comvita even if it crimped near-term earnings.
So far this year, Comvita shares have ranged between NZ$1.38 and NZ$2.12. They were untraded on Friday, but have gained about 40 per cent year to date, compared with a flat showing for the benchmark NZX-50 index.
Comvita makes skincare and health products from honey, exporting about 80 per cent of its output to 20 countries.
Cerebos is best known for its Essence of Chicken brand in Singapore. In New Zealand, it is best known for coffee and powdered drinks, herbs, salt and sauces.
Cerebos Limited closed on Friday at S$4.810.
Cerebos Bids US$57 million for New Zealand’s Comvita
Looking to diversify and expand its business, international food group Cerebos Limited Friday made a US$57.0-million (S$72.8-million) cash offer for New Zealand’s honey products company Comvita Ltd.
The group made an offer of NZ$2.50 for each Comvita share, a 19-per cent premium to Comvita’s closing price on Thursday.
“We can provide strategic assistance in sales and marketing in Asia where the Comvita brands are not yet well established,” said Trevor Kerr, Chairman of Cerebos Greggs, a subsidiary of the group.
He said Cerebos would look to invest in Comvita even if it crimped near-term earnings.
So far this year, Comvita shares have ranged between NZ$1.38 and NZ$2.12. They were untraded on Friday, but have gained about 40 per cent year to date, compared with a flat showing for the benchmark NZX-50 index.
Comvita makes skincare and health products from honey, exporting about 80 per cent of its output to 20 countries.
Cerebos is best known for its Essence of Chicken brand in Singapore. In New Zealand, it is best known for coffee and powdered drinks, herbs, salt and sauces.
Cerebos Limited closed on Friday at S$4.810.