Tegel IPO

[Valuegrowth]

Philippines are having a fairly strong local market for poultry products. Naturally, growing population there will create demand for protein. They are also having some export market for their poultry products. There was a temporary ban on importing poultry products from the philippines to countries such as Middle East and Japan in 2017 due to bird flu outbreaks. They also have competition from Thailand for export market such as Japan. I have no idea about intention of Bounty Fresh on this takeover deal. They might have some long term plan.

Some Asian countries will have growing poultry market within their region. Besides Asia is having one of the fastest growing populations in the world.

Quality strong firms in this sector with innovative ideas not only will outperform others but also will go for expansion and acquisition if they see some opportunity. Bountry Fresh in Philippines have some good production range and they are using the latest tamper evident packaging materials for packing whole chicken products as well as cut-ups and marinated products.

If the takeover goes through, I would like to see how they are going to manage the company. Hope they will not delist the company.

[Balance]

Chooks are already quite cheap. Couldn't they just buy chooks and sell them from there. You don't need a whole supply chain to sell retail.

http://www.nzherald.co.nz/business/n...ectid=12041303

NZ 5th most expensive country for poultry.

Don't need survey to know that we pay a huge price in NZ for chickens compared to other countries.

So where's the upside for Bounty Fresh Food?

"Tegel is a leading brand in the New Zealand market with real potential to expand into international markets, particularly the Philippines where Bounty Fresh Group's sales and distribution networks are extensive,."

Asian people do not eat frozen chickens.

[Snow Leopard]

...Asian people do not eat frozen chickens.

but 'Westerners' make sweeping generalisations.

[Beagle]

http://www.nzherald.co.nz/business/n...ectid=12041303

NZ 5th most expensive country for poultry.

Don't need survey to know that we pay a huge price in NZ for chickens compared to other countries.

So where's the upside for Bounty Fresh Food?

"Tegel is a leading brand in the New Zealand market with real potential to expand into international markets, particularly the Philippines where Bounty Fresh Group's sales and distribution networks are extensive,."

Asian people do not eat frozen chickens.

They'll probably strip out many layers of grossly overpaid and incompetent management saving millions per annum and then hire vast numbers of Philippine workers on the minimum wage saving millions more.
They'll reduce supply into the N.Z. market, (seems so logical doesn't it) and the price N.Z. customers will pay will revert to prices before this self imposed glut and decline in prices started and make even more. Tegal have been grossly incompetent with their growth strategy. If they'd just kept volumes the same they would have made more money in my opinion through less serious discounting. Management have shot themselves in the foot. It would have been a good company if they hadn't tried to con themselves and shareholders it was a growth company.

[bull....]

bounty being buying on market , explains the heavy volume

[777]

bounty being buying on market , explains the heavy volume

Are they allowed to do that if they have made a formal offer?

[bull....]

Are they allowed to do that if they have made a formal offer?

i dont know the exact law , but you would assume they are allowed if they intending to formally announce a takeover?

[JeremyALD]

It says they own 50%? So Affinity have sold their shares?

[kiwidollabill]

They'll probably strip out many layers of grossly overpaid and incompetent management saving millions per annum and then hire vast numbers of Philippine workers on the minimum wage saving millions more.
They'll reduce supply into the N.Z. market, (seems so logical doesn't it) and the price N.Z. customers will pay will revert to prices before this self imposed glut and decline in prices started and make even more. Tegal have been grossly incompetent with their growth strategy. If they'd just kept volumes the same they would have made more money in my opinion through less serious discounting. Management have shot themselves in the foot. It would have been a good company if they hadn't tried to con themselves and shareholders it was a growth company.

I've been told there is already a large Phillipino community in their workforce. Very profficient in boning out I've been informed.

[winner69]

It says they own 50%? So Affinity have sold their shares?

Lock-up agreement ....will sell to them if it goes ahead