Cerebos makes NZ$71.6 million (S$72.6 million) bid for NZSX listed Comvita Limited

Cerebos Pacific Limited News Release

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news release final
FOR IMMEDIATE RELEASE Contact : Daniel Quek
+65-62120100
Cerebos makes NZ$71.6 million (S$72.6 million) bid for NZSX listed Comvita Limited
[Singapore : 14th October 2011 ]
Cerebos Pacific Limited announced today that it has delivered a Takeover Notice to Comvita Limited (Comvita) which proposes to acquire all the shares in the New Zealand Stock Exchange (NZSX) listed honey based and natural products manufacturer for a cash consideration of approximately NZ$71.6 million (About S$72.6 million) A new company called Cerebos New Zealand Limited has been established for this acquisition.


The offer price of NZ$2.50 (Approximately S$2.53) for each ordinary share represents a 19 per cent premium to the closing price of Comvita’s shares on the NZSX yesterday (Thursday, 13th October 2011. The offer price is also a 25 per cent premium to the one-month Volume Weighted Average Price (“VWAP”) and a 38 per cent premium to the three-month VWAP up to and including Thursday, 13th October 2011.
President & Group Chief Executive Officer, Mr Eiji Koike said : “Cerebos would be looking to explore areas of collaboration. In particular, we can provide strategic assistance for sales and marketing in Asia where we have considerable strengths but where the Comvita brands are not yet well established. The Comvita business has clear potential which can only be fulfilled by an increased investment in R&D and brand building. If the acquisition succeeds, it would bring benefits to both sides and going forward, we would identify the most beneficial pathways for Comvita and Cerebos.”
Cerebos’ offer is conditional on 90% acceptance and certain other conditions specified in the proposed offer document. If the offer is successful, Comvita will be de-listed from NZSX and operated as a Cerebos subsidiary company. Cerebos intends to take a long term perspective, focusing on sales growth and deliver shareholder value in the long term.
The next step in the takeover process is for Cerebos to forward its Offer Document to Comvita shareholders. In the meantime, Comvita is required to prepare a Target Company Statement, including an Independent Adviser’s Report on the merits of Cerebos’ offer, and a recommendation to shareholders from its directors. The outcome of the takeover bid is likely to be known in the next few months and is subject to clearance by the Overseas Investment Office of New Zealand.
Added Mr Koike: “The cash offer should be highly attractive to Comvita shareholders and even more so if the current market turmoil leads to further economic uncertainty. We are committed to the long term by providing the funds necessary to grow the business, like we do Atomic, Caffe L’Affare and Dominion Salt. In fact the Cerebos group has recently invested in a NZ$13 million expansion at Dominion Salt in Mt Maunganui in which it is a 50 per cent joint venture partner and is currently making a NZ$6 million investment in New Zealand’s only instant coffee producing plant in Dunedin.”
ABOUT CEREBOS
Cerebos Pacific Limited is a leading food and health supplements enterprise with its corporate headquarters in Singapore. It is a company listed on the Singapore Exchange Trading Limited, providing management services to subsidiary and associate companies in Asia Pacific.
Its flagship product, BRAND’S Essence of Chicken is the category leader. Its main markets are Thailand, Taiwan, Singapore, Malaysia, Hong Kong and China. More than 150 million bottles of BRAND’S products were sold last year. BRAND’S health supplement tablets range has 25 variants. In Australasia, Cerebos’ products include gravies, sauces, coffee and cooking aids marketed under established brand names such as Fountain, Gravox, Robert Harris and Toby’s Estate.
In New Zealand, many Cerebos brands are household names. These include Gregg’s, Robert Harris, Bruno Rossi, Atomic and Caffe L’Affare coffees, Raro and Refresh powdered beverages, Gregg’s herbs and spices, Cerebos salt, Bisto gravies, Cerebos and Whitlocks condiments & sauces, and Gregg’s desserts.
Cerebos’ homepage address is http://www.cerebos.com
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Attached :
Cerebos Pacific Limited SGX Announcement 14 October 2011 : PROPOSED FULL TAKEOVER OFFER FOR ALL OF THE EQUITY SECURITIES IN COMVITA LIMITED
Media Contact :
Daniel Quek
Tel: +65-62120289 DID
email: dq@cerebos.com.sg