Comvita independent directors are urging shareholders to reject Cerebos' $2.50 per share takeover offer of the Paengaroa based manuka honey products business.

Download Comvita's Target Company Statement here:
Comvita_Target_Company_Statement_Presentation.pdf

The independent directors advise rejection of the offer from the foreign owned company on five main counts, published today in Comvita's Target Company Statement:

• Cerebos' $2.50 per share offer significantly undervalues Comvita.

• The Cerebos offer is below an independent adviser's valuation of $3.40-$4 per share.

• The independent directors believe the independent adviser's valuation does not fully reflect their view of Comvita's potential and therefore its value.

• Comvita's current growth strategies built on product innovation, an enhanced supply chain, the control of channels to market and significant investment in research and development, are starting to deliver significant and increasing returns to shareholders.

• The independent directors do not believe there is anything of significance that Cerebos can offer over and above the existing strategic initiatives being developed by Comvita.

Comvita chairman Neil Craig says shareholders should read the Target Company Statement carefully, particularly section 15, which sets out the independent directors' reasons for rejecting the offer.

He says any shareholders considering selling their shares to Cerebos should wait until the last few days before the offer closes on December 22.

This is because those who accept the Cerebos offer early will not be able to withdraw and accept a better offer from a third party, should one emerge during the offer period.

Neil says the $2.50 price offered by Cerebos New Zealand, a 100 percent foreign owned subsidiary of Singapore-listed Cerebos Pacific, undervalues Comvita.

'In the last five years substantial progress has been made in the development of Comvita and the business is performing strongly.

'Management and staff across the company are focused and determined to deliver on many years of careful planning and investment in growth initiatives.

'This is not the time to sell your Comvita shares – none of the directors are accepting the offer.

'If a buyer emerges willing to fully recognise the potential of Comvita, we will assess such an offer and report to shareholders.”