Further negotiations by Comvita in acquiring New Zealand Honey Limited has seen the $12.3 million purchase price being paid in $10.3m in cash and $2m in Comvita shares at $3.50 each.

Comvita CEO Brett Hewlett.

Last month Comvita announced it would buy New Zealand Honey Limited from New Zealand Honey Producers Co-Operative Limited by way of $7.3m in cash and $5m in Comvita shares at $3.50 each.

Comvita says the financial settlement will now be completed on July 1, rather than mid-June, as originally anticipated.

The purchase will see the Paengaroa-based business acquire one of the largest exporters of NZ honey products and producer of well-known brands Hollands Honey, 3 Bees and Sweet Meadow.

The move by the global natural health products company is conditional only on approval by special resolution of shareholders of NZ Honey Producers Co-Operative Ltd.

The acquisition comprises of all assets of NZ Honey Ltd – including land and honey processing assets in Timaru, honey inventory at settlement and a long-term honey supply agreement with the producers co-operative.

Established in 1981, the New Zealand Honey Producers Co-Operative, based in Timaru, has grown to become one of the leading suppliers of honey products in the country.

For 2013, NZ Honey Ltd's sales totalled $27.3m. The co-operative is owned by 70 beekeeper shareholders, with the majority in the South Island.

In May, Comvita CEO Brett Hewlett said the acquisition goes a long way to address the supply constraints that have been challenging Comvita in recent years.

'We also gain valuable production capacity and additional company exposure in the South Island.

'Historically, Comvita has sourced honey predominantly from the North Island.”