A potential takeover of Bay of Plenty honey company Comvita by a third party is off the table, after negotiations fell over on price.
Comvita’s board of directors announced in April that a third party was interested in acquiring ‘all or substantially all’ of the company’s shares.
In a statement issued today, Comvita says as an NZX-listed company, they are from time to time ‘a focus from parties wishing to buy a controlling stake in Comvita’.
“Under obligation of being a listed company, these approaches are assessed by the board as to the appropriateness in terms of value to the business and whether they are in the best interests of shareholders. With respect to the shareholders, the fundamental consideration is price per share (including terms and conditions).”
It is the ‘unanimous opinion’ of the directors that the most recent approach could been ‘positive for the company […] in driving the Comvita brand forward into new markets and new sales channels’.
“However, in negotiations we could not bridge the considerable distance between us on price and therefore, Comvita directors unanimously agreed to withdraw from the process.”
The directors say a great deal of insight was gained during the due diligence process.
“This will be invaluable for Comvita in realising our strategy over the long term.”
The proposed takeover was announced last month after the latest estimates on the value of Comvita’s 2018 honey harvest resulted in the company downgrading its forecasted after tax operating earnings to $8m-$11m for the financial year ending June 30.