Goodman Fielder accepts reduced takeover offer

Friday, 04 July, 2014

The Goodman Fielder Board has recommended that shareholders accept a lower takeover offer from Wilmar International and First Pacific than was initially offered.

In May, the two companies increased their offer from $0.65 to $0.70 per share. However, following completion of due diligence, the companies reduced their offer to $0.675 per share. The proposed scheme allows Goodman Fielder to pay a final dividend of $0.01 per share.

“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,” said Steve Gregg, chairman of Goodman Fielder.

“I believe it also 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.

“Therefore, in the absence of a superior proposal and subject to the independent expert concluding that the scheme is fair and reasonable and accordingly in the best interests of Goodman Fielder shareholders, the board will unanimously recommend that shareholders vote in favour of the scheme.”

The company will hold a meeting about the takeover in November and anticipates that it will be implemented by the end of 2014.

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