Tegel IPO

[Arbroath]

I'd say OIO approval is fairly certain given Tegel is 45% owned by a Singapore based private equity fund now and was 100% 2 years ago. Its just a change of overseas owner from a financial owner to an operator owner who is probably more likely to get a decent return from the assets.
$1.27 with the dividend included is a fair offer in my opinion and I'd say the deal is 80% likely to succeed as it stands now - not a great result for IPO holders but there will be plenty that bought at $1.10 or lower that will be quite happy with the result. The offer is just over 8x EV/ebitda which is similar to the IPO metrics except the ebitda has deteriorated 10-15% since the IPO 'forecasts'...say no more.

[winner69]

Just lol at all the comments on the NBR article, more activity then here:

https://www.nbr.co.nz/article/takeov...15024#comments

$1.55 take over price would be fair (same as IPO). That's not gonna happen when the leading shareholder has already bailed.

The deal looks 99% done. OIO won't block it.

Nelly Smickers comment quite good

[carrom74]

Just lol at all the comments on the NBR article, more activity then here:

https://www.nbr.co.nz/article/takeov...15024#comments

$1.55 take over price would be fair (same as IPO). That's not gonna happen when the leading shareholder has already bailed.

The deal looks 99% done. OIO won't block it.

If it is a done deal then why would there be such a difference between the offer price and the current share price? atm?

[Filthy]

If it is a done deal then why would there be such a difference between the offer price and the current share price? atm?

assume it is because the offer hasnt actually been made yet - only a notice that it will be made between the 11th and the 28th

TGH has been subsequently advised that the dates between which the offeror can make a takeover offer, based on this notice, are 11 and 28 May 2018

some punters might want to use the cash elsewhere 'now', rather than wait... who knows.

I am guessing it might firm up to $1.20(ish) once made and then awaiting OIO approval.

[biker]

A cynic might say another screwing of the punters by Private Equity facilitated by brokers ( see who helped float this and clipped the ticket and who is advising the purchaser. Clip Clip .........)

It’s happened many times before and will happen again and again.......

Ho hum.

[steveb]

Inghams might start to worry about this possible takeover as it might well give Bounty Holdings a backdoor into the Aussie markets

Tegel

18/8/2016, 1:07 pmGENERALTegel Group Holdings Limited (NZX/ASX: TGH) is pleased to notify the market of a significant positive business change in market access to Australia. Previously exports from New Zealand into Australia were limited to products that had been fully cooked. Agreement has now been reached allowing the export of raw poultry products from New Zealand to Australia within the agreed access framework.

[Balance]

If it is a done deal then why would there be such a difference between the offer price and the current share price? atm?

Anyone who have done real estate with the Asians know that they put in an 'out' clause - in this case, they have until May 11th to make an offer.

They may not make an offer!

Downside risk is 32c, upside is 15c - best to take the money and run!

[dubya]

A question for someone.

Are Bounty Fresh Foods allowed to buy shares on market before May 11th?

[crighton100]

I think the current govt will not be happy with an overseas company taking over our total chooks which will push the price of chickens in the supermarket up & up,which will give the aussies [ingram] able to push up prices at will as the philippenes will want to export to their country where they have a shortage of a very popular product.And what about all those big people who love their KFC,will that increase their prices { & they are good old labour voters}...& will the current 45% owner from singapore be happy???I sold today at a nice little profit,so dont care either way.

[Valuegrowth]

Not only Chinese companies but also Philippines-based companies were looking for food related investment such as meat and milk companies. Now Bounty fresh foods are willing to pay 50% premium. Will the takeover succeed?

In stock markets we find take over (acquisition) opportunities as well. As I said we should see some takeovers in this sector. Once they take over some managers will manage well and as a result of this investors will benefit. However, I have seen some managers have miserably failed to take the business to the next level after the takeover (acquisition).

According to my study there will be great opportunities in this sector in the Asia pacific region in the coming years.