(HONG KONG) – On Monday, Goodman Fielder, which is one of the Australia’s largest consumer food production company, said that it had rejected a tender offer by Singapore’s Wilmar International and First Pacific Company of Hong Kong.
Wilmar, whose largest shareholders are Robert Kuok, a billionaire of Malaysia, and Archer Daniels Midland (ADM), the American agribusiness giant – is one of the Asia’s largest producers and traders of agricultural commodities.
Wilmar has a 10% stake in Goodman Fielder, that manufactures packaged foods, breads and sauces and is also listed on the New Zealand and Australian exchanges. It had collaborated with First Pacific, which is currently owned by Anthoni Salim, an Indonesian billionaire, in an ask for Goodman Fielder where they evaluated the company at AUD 1.27 billion or USD 1.2 billion.
Wilmar had considered a bid for Goodman Fielder 2 years ago, when it made its first investment in the Australian company, but the two companies could not agree upon a price. The companies haven’t reached a mutual agreement on the price till date.
The board of directors of the Australian company rejected the latest stance by Wilmar and First Pacific declaring it too low. They said, “the current proposal materially undervalues Goodman Fielder and is opportunistic.”
The bidders offered 65 Australian cents per share for Goodman Fielder, which shows a premium of 18% where the stock closed before bid was made. However, in recent weeks, shares of Goodman Fielders fell dramatically after it announced on 2nd April that business condition had worsen since February, and its results for financial year which ends on 30th June were likely to be 10 to 15 % below than what analysts had expected.