Tegel receives unsolicited takeover offer from Bounty

New Zealand’s poultry meat firm, Tegel Group Holdings Ltd., has received a notice of takeover from Bounty Holdings New Zealand Limited, which is a wholly-owned subsidiary of Bounty Fresh Food.

nito, Bigstock
nito, Bigstock

New Zealand’s poultry meat firm, Tegel Group Holdings Ltd., has received a notice of takeover from Bounty Holdings New Zealand Limited, which is a wholly-owned subsidiary of Bounty Fresh Food.

The takeover notice has been reported by Tegel, which commented that neither its board nor the company itself had solicited this action. It has set up an independent board sub-committee to consider the notice, which covers the acquisition of all issued shares in Tegel by Bounty.

Bounty’s move is not an offer to purchase the shares, but it does entitle the firm to make an offer to do so for NZ$1.23 (US$0.87) per ordinary share at any time between May 10 and 26 of this year. Bounty is not obligated to do so, however.

According to Tegel, Claris Investments Pte Ltd., which holds 45 percent of the company’s issued shares, would be committed to accept any offer made by Bounty.

Bounty Holdings is the New Zealand subsidiary of Philippines-based poultry integrator, Bounty Fresh Food, according to Radio New Zealand.

Founded in 1961, Tegel Group Holdings is New Zealand’s top chicken and turkey meat producer, processing around 55 million birds per year for the retail, food service and quick-service markets. This equates to around half of the country’s total poultry meat output, and its brands include Tegel, Top Hat, and Rangitikei.

The firm also sells its poultry products in some selected overseas markets, including Australia, Pacific islands, the Middle East (United Arab Emirates and Bahrain), and Asia (Hong Kong, Japan and the Philippines).

Since reporting its first half 2018 financial year results in December of 2017, Tegel has released an update on its trading performance. This reported some loss of production arising from water supply issues and an ammonia leak at its New Plymouth plant, but that production had soon been restored. Domestic sales and revenue were expected to be up on last year, at least in part due to strong growth in the free-range market sector.

Tegel also has processing facilities in Auckland and Christchurch, and employs more than 2,300 people in New Zealand.

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