Australia

Goodman Fielder agrees to takeover bid from Wilmar and First Pacific

Goodman Fielder agrees to takeover bid from Wilmar and First Pacific

Iconic Australian food maker Goodman Fielder has finally agreed to an A$1.34bn (US$1.26bn) offer by Wilmar International and First Pacific Company to acquire the company after the last two bids were turned down. 

In a statement issued on the evening of June 2, Goodman Fielder said it had entered into an agreement with Honk Kong’s Wilmar and Singapore’s First Pacific under which it will acquire all of the remaining issued equity in the firm.

Under the terms, Goodman Fielder shareholders will be entitled to receive A$0.675 (US$0.63) per share, In addition, shareholders will also receive a final dividend of AU$0.01 per share for the year ending 30 June 2014.

This is the third time the two Asian companies have tried to buy the troubled Australian maker of breads and spreads, whose product lines include Meadow Lea, Praise, White Wings, Pampas, Mighty Soft, Helga’s and Wonder White.

Their original offer of A$1.27bn (US$1.19bn) in April was rebuffed, so they sweetened it to A$1.37bn (US$1.28bn) in May. But having taken a further look at Goodman Fielder, the two lowered the bid to A$1.34bn.

The statement added that Goodman Fielder would appoint an independent expert to determine whether the deal is fair and in the best interests of its shareholders. A report on the matter will be released in September.

“I believe it… represents a positive outcome for our employees, our customers and our consumers. It provides an opportunity to further leverage our strong consumer food brands in Australia and New Zealand to grow our business across the Asian region,” said Steve Gregg, chairman at Goodman Fielder.

“In reaching our conclusion to unanimously recommend that shareholders vote in favour of the scheme, the board concluded that the proposal represented an attractive value outcome for shareholders,” he added.

The statement also revealed that the company, which held A$1.52bn (US$1.43bn) in net assets on December 31, will also take write-downs of A$300m to A$400m (US$281m-375m), or as much as 26% of its assets, in the year ended June 30.

Related News

Universal Robina Corporation says Griffin's snack brands - including ETA Salty Snacks - are at the forefront of global consumer snacking trends

Philippine food major buys New Zealand snack firm Griffin’s

MAURI anz will operate 11 manufacturing and production sites across Australia and New Zealand making flours, baking mixes and bread improvers

Weston Milling and AB Mauri merge in Australia

Goodman Fielder acquisition clears Chinese regulatory hurdle

Goodman Fielder acquisition clears Chinese regulatory hurdle

Goodman Fielder Australia MD killed in bike accident

Wilmar secures 10.1% interest in Goodman Fielder and eyes more

Wilmar secures majority interest in Goodman Fielder

Goodman Fielder being 'prudent' with FY12 earnings forecasts

Costly bakery consolidation and rocky conditions hit Goodman Fielder

Related Products

See more related products

Submit a comment

Your comment has been saved

Post a comment

Please note that any information that you supply is protected by our Privacy and Cookie Policy. Access to all documents and request for further information are available to all users at no costs, In order to provide you with this free service, William Reed Business Media SAS does share your information with companies that have content on this site. When you access a document or request further information from this site, your information maybe shared with the owners of that document or information.