22-10-2014, 12:01 AM
FIRB blesses foreign takeover of Goodman
THE AUSTRALIAN OCTOBER 22, 2014 12:00AM
Eli Greenblat
Senior Business Reporter
Melbourne
A TICK of approval from China’s Ministry of Commerce looks to be all that stands between Singaporean oils trader Wilmar International and Hong Kong investment company First Pacific seizing control of Goodman Fielder and its portfolio of brands that include Meadow Lea, Helga’s, Mighty Soft and White Wings.
The Foreign Investment Review Board gave its blessing to the $1.3 billion takeover of Goodman Fielder by the overseas partners, saying it had no objection to Wilmar and First Pacific seizing control via a scheme of arrangement.
It follows last month’s decision by the Australian Competition & Consumer Commission not to intrude in the takeover of the bread, spreads and sauces business, even though the purchase would lift Wilmar’s share of the local edible oils market to more than 50 per cent.
The takeover, launched in April, has gone through a lengthy approval process with some expecting it to be significantly delayed as regulators across Australia, New Zealand and China trawled through the deal.
In September the takeover was postponed, not for the first time, because of regulatory delays in China.
As a result, Goodman Fielder and the bidders were forced to extend the takeover end date from December 31 into the first quarter of next year, March 2015, when a shareholder meeting will vote on the scheme.
It is expected shareholders will vote in favour of the scheme of arrangement — even though the takeover price was lowered by 2.5c per share after Wilmar and First Pacific inspected Goodman Fielder’s books.
Goodman Fielder will hold its annual general meeting on November 20 where an update for investors, including potentially an approval by the Ministry of Commerce, could be announced.
Shares in Goodman Fielder ended up half a cent yesterday at 62.5c, a discount to Wilmar and First Pacific’s 67.5c a share offer.
Continued delays into finalising the takeover comes as Goodman Fielder and other bread suppliers face intense competition within the supermarket channel, where the introduction of private label bread as low as 85c a loaf threatens sales of branded bread such as Helga’s and Mighty Soft.
New Zealand shoppers have also been tempted with the introduction of $1-a-loaf bread.
But it is believed Goodman Fielder’s suitors are more interested in the food company’s potential in Asia than earnings it harnesses from the challenging Australian and New Zealand supermarket sector.
Wilmar, one of Asia’s leading agribusiness companies and the world’s largest processor and merchandiser of palm and lauric oils, has more than 450 manufacturing plants and a distribution network that feeds into China, India, Indonesia and 50 other countries.
THE AUSTRALIAN OCTOBER 22, 2014 12:00AM
Eli Greenblat
Senior Business Reporter
Melbourne
A TICK of approval from China’s Ministry of Commerce looks to be all that stands between Singaporean oils trader Wilmar International and Hong Kong investment company First Pacific seizing control of Goodman Fielder and its portfolio of brands that include Meadow Lea, Helga’s, Mighty Soft and White Wings.
The Foreign Investment Review Board gave its blessing to the $1.3 billion takeover of Goodman Fielder by the overseas partners, saying it had no objection to Wilmar and First Pacific seizing control via a scheme of arrangement.
It follows last month’s decision by the Australian Competition & Consumer Commission not to intrude in the takeover of the bread, spreads and sauces business, even though the purchase would lift Wilmar’s share of the local edible oils market to more than 50 per cent.
The takeover, launched in April, has gone through a lengthy approval process with some expecting it to be significantly delayed as regulators across Australia, New Zealand and China trawled through the deal.
In September the takeover was postponed, not for the first time, because of regulatory delays in China.
As a result, Goodman Fielder and the bidders were forced to extend the takeover end date from December 31 into the first quarter of next year, March 2015, when a shareholder meeting will vote on the scheme.
It is expected shareholders will vote in favour of the scheme of arrangement — even though the takeover price was lowered by 2.5c per share after Wilmar and First Pacific inspected Goodman Fielder’s books.
Goodman Fielder will hold its annual general meeting on November 20 where an update for investors, including potentially an approval by the Ministry of Commerce, could be announced.
Shares in Goodman Fielder ended up half a cent yesterday at 62.5c, a discount to Wilmar and First Pacific’s 67.5c a share offer.
Continued delays into finalising the takeover comes as Goodman Fielder and other bread suppliers face intense competition within the supermarket channel, where the introduction of private label bread as low as 85c a loaf threatens sales of branded bread such as Helga’s and Mighty Soft.
New Zealand shoppers have also been tempted with the introduction of $1-a-loaf bread.
But it is believed Goodman Fielder’s suitors are more interested in the food company’s potential in Asia than earnings it harnesses from the challenging Australian and New Zealand supermarket sector.
Wilmar, one of Asia’s leading agribusiness companies and the world’s largest processor and merchandiser of palm and lauric oils, has more than 450 manufacturing plants and a distribution network that feeds into China, India, Indonesia and 50 other countries.