Source: Radio New Zealand
Comvita products on display. Supplied
The takeover bid for honey exporter Comvita has failed after not enough shareholders approved of the offer.
The company’s board had vigorously pushed shareholders to vote in favour of a $56 million deal with Florenz, owned by Canterbury businessman Mark Stewart.
However, the bid failed to meet key thresholds needed for the scheme to pass.
To be approved, the scheme needed to be approved by at least 75 percent of votes cast by shareholders in each interest class, and by more than 50 percent of the total votes.
In the first interest class, which included Florenz Associates, 100 percent of votes were in favour.
In the second interest class, excluding Florenz Associates, 54.29 percent voted in favour and 45.71 percent against.
In total, 54.34 percent voted in favour, and 45.66 against.
Comvita’s board said it was working with lenders and advisers to work out next steps, and “all available options” would be considered.
“The board has been working with its advisers and banking partners to evaluate a range of funding options as part of its contingency planning,” chair Bridget Coates said.
She said the board wanted to assess options to recapitalise the company.
“This work is progressing with urgency and discipline to secure a solution that stabilises the business, positions it to grow again, and reduces ongoing risk to shareholders.
“Our duty is to act in the best interests of all shareholders and to ensure the path forward is fair, transparent and well-considered.”
The bid had attracted criticism from some, including Comvita’s co-founder Alan Bougen, who pushed to veto the scheme.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
