Bounty Fresh to takeover New Zealand’s Tegel Group
Philippine-based Bounty Fresh Food is taking over New Zealand’s biggest poultry producer Tegel Group in a $309 million acquisition bid.
This, after Tegel Group’s independent directors unanimously recommended that shareholders accept Bounty’s offer made last April, a report in Philippine Star showed.
According to the independent directors, the offer price made by Bounty Fresh is fair and within the range assessed by the independent directors for the current value of Tegel shares; that the offer price represents a premium to Tegel’s undisturbed historic trading price; and that the offer’s 50 percent minimum acceptance condition has already been satisfied.
Bounty currently has a 16.3 percent share in Tegel. After the acquisition, its ownership of the company would grow to 46.1 percent.
It was just in April when Bounty Fresh, through its subsidiary Bounty Holdings New Zealand, made the offer for Tegel amid a glut in domestic chicken supply.
The offer was part of Bounty’s expansion strategy outside the Philippines.