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Comvita turns down takeover proposal from undisclosed buyer

FBR Staff Writer Published 22 May 2018

Comvita, a New Zealand-based honey products manufacturer, has turned down a takeover offer from an undisclosed buyer due to differences over price.

While the bid was not revealed by the New Zealand firm, it said that negotiations with the potential buyer ended without culminating into an agreement on a transaction.

The company said that the due diligence process from the third party has come to an end with no further consideration of any proposal to acquire it.

Comvita said that its directors are of the unanimous opinion that the approach from the third party buyer has been very positive for the company in pushing its brand forward across new markets and new sales channels.

However, it said that the negotiations fell apart as there was a considerable difference in the price the company was expecting, compared to what was offered. As a result, its directors unanimously agreed to back out from the process.

Comvita first revealed the due diligence process by the third party in mid-April.

The company, in a statement, said: “While evaluation of approaches to invest into or acquire a controlling stake in Comvita is an important consideration of the Board, it has the effect of diversion of Executive and Board time from the day to day operation of the business.

“On the positive side, a great deal of insight was gained during the due diligence process which will be invaluable for Comvita in realising our strategy over the long term.”

Founded in 1974, Comvita is a global natural health company with operations across New Zealand, Australia, Asia and Europe.

Some of the products manufactured by the Te Puke-based company are Manuka Honey, Medihoney, Olive Leaf Extract, Omega 3, Propolis and Royal Jelly.

In last July, Comvita completed the creation of a joint venture in China with Shenzen Comvita Natural Food (SCNF), its long term distributor partner. Comvita owns 51% in the Chinese distribution joint venture, named as Comvita Food (China).

In 2011, Comvita turned down a $57m takeover offer from Singapore-based food group Cerebos, on grounds that the price had undervalued the company.

Image: New Zealand-based Comvita is a manufacturer of honey products. Photo: courtesy of Scott Bauer, USDA ARS/Wikipedia.org.