Australia: Goodman Fielder rejects takeover proposal

It has been reported that food manufacturer Goodman Fielder has rejected a takeover proposal from agribusiness group Wilmar International Limited (Wilmar) and Hong Kong based investment company First Pacific Limited (First Pacific).

According to Australian Food News, the company has said the proposal “undervalues Goodman Fielder” and is “opportunistic”.

The takeover, offered to the company at the end of April, is described as a non-binding, conditional proposal to acquire all the issued equity in Goodman Fielder by way of a scheme of arrangements at a proposed priced of A$0.65 per share, valuing the shares at A$1.27 billion ($1.18 billion). Wilmar is currently a 10.1 per cent shareholder of Goodman Fielder.

Goodman Fielder has said its board remains “focused on maximising shareholder value and will be constructive in relation to proposals which are consistent with this objective”.

The offer for Goodman Fielder comes not long after the Company announced it expected its earnings in the 2014 financial year to be 10 to 15% lower than previously expected.

Source: Australian Food News