Bounty’s offer to acquire Tegel Foods approved

Bounty Holdings New Zealand’s offer to buy New Zealand poultry company Tegel Foods has been approved by the Overseas Investment Office (OIO).

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LukaszTyrala, Freeimages.com
LukaszTyrala, Freeimages.com

Bounty Holdings New Zealand’s offer to buy New Zealand poultry company Tegel Foods has been approved by the Overseas Investment Office (OIO).

The OIO approved the offer unconditionally under the Overseas Investment Act, according to a statement from Tegel Foods.

A wholly owned subsidiary of Philippines-based Bounty Fresh Foods, Bounty Holdings New Zealand offered to pay NZ$1.23 (US$0.82) per share in an unsolicited takeover offer proposed in April, and followed up with a full takeover offer at the end of May.

After reviewing an offer from Bounty Holdings New Zealand Limited to acquire all the ordinary shares of the company, Tegel’s directors recommended to shareholders that the offer be accepted.

After reviewing an offer from Bounty Holdings New Zealand Limited to acquire all the ordinary share of the Tegel Group, a group of independent directors is recommending shareholders to accept the offer.

Bounty Fresh Group, according to the WATTAgNet Top Poultry Companies database consists of retail rotisserie chicken chain Chooks To Go, poultry integrator Bounty Agro Ventures Inc. (BAVI), and sister company Bounty Fresh Food Inc. The operations breed their own parent and grandparent stock to provide fresh and marinated chicken, processed meats and table eggs in the Philippines. Bounty Fresh is a market leader in table eggs and in layer genetics.

Tegel Foods is New Zealand's largest poultry producer with 50 percent market share, as well as 90 percent for turkey. Strong exports also have driven recent growth. Tegel has breeder flocks, hatching, feed milling, slaughter, processing, further processing and cooking operations, all within New Zealand. In addition to its flagship brand Tegel, the company sells under the brands Rangitikei, Top Hat and Pure New Zealand Premium Chicken. Tegel’s Golden Coast Commercial division sells day-old broilers and layers. Export markets include Australia, the Pacific Islands, the Philippines, Hong Kong, the United Arab Emirates and Bahrain.

2018 has been a busy year for mergers and acquisitions in the poultry industry. Tyson Foods has announced its intent to acquire Tecumseh Poultry and Keystone Foods, George's Inc. has announced its plans to acquire Ozark Mountain Poultry, and MHP revealed its interest in acquiring Perutnina Ptuj.

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