Comvita - CVT

[Balance]

https://www.nzx.com/announcements/431304

On 22 February 2024, Comvita Limited (NZX:CVT) advised it had received a highly-conditional unsolicited non-binding indicative offer (NBIO) from a credible offshore party to acquire all of its shares. The indicative offer price represented a significant premium to the prevailing share price.Comvita has provided the interested party with confidential access to the company and its information in order to undertake due diligence. A sub-committee of the Board was established to oversee this process, with advice from financial advisors Goldman Sachs, as well as legal advisors Chapman Tripp and Simpson Grierson.Throughout this process, the Comvita Board of Directors have maintained a tight focus on maximising value for shareholders, to enable the potential acquirer to appraise both the near term and longer term outlook for the company in its global markets.Comvita remains subject to confidentiality restrictions in respect of the NBIO and its engagement with the offshore party but will inform shareholders of material developments and any other matters, in accordance with its continuous disclosure obligations.The Board advises shareholders that there is no certainty that any transaction will eventuate from the NBIO process. As such, no action is required from shareholders at this time.

20%+ profit downgrade.

Looks to me like the potential bidder will be revising down the takeover price if it proceeds.

[winner69]

https://www.nzx.com/announcements/431304

On 22 February 2024, Comvita Limited (NZX:CVT) advised it had received a highly-conditional unsolicited non-binding indicative offer (NBIO) from a credible offshore party to acquire all of its shares. The indicative offer price represented a significant premium to the prevailing share price.Comvita has provided the interested party with confidential access to the company and its information in order to undertake due diligence. A sub-committee of the Board was established to oversee this process, with advice from financial advisors Goldman Sachs, as well as legal advisors Chapman Tripp and Simpson Grierson.Throughout this process, the Comvita Board of Directors have maintained a tight focus on maximising value for shareholders, to enable the potential acquirer to appraise both the near term and longer term outlook for the company in its global markets.Comvita remains subject to confidentiality restrictions in respect of the NBIO and its engagement with the offshore party but will inform shareholders of material developments and any other matters, in accordance with its continuous disclosure obligations.The Board advises shareholders that there is no certainty that any transaction will eventuate from the NBIO process. As such, no action is required from shareholders at this time.

Share price back to where it was pre the NBIO announcement ……and about a half of what is was a year ago

Might be worth a punt .,,,,,big profit on takeover ….and if that doesn’t work a rerate as things get better

Bit of a mess having a profit downgrade when due diligence is being undertaken

[winner69]

20%+ profit downgrade.

Looks to me like the potential bidder will be revising down the takeover price if it proceeds.

V expected 2nd half ebitda its 28% to 35% downgrade

Downgrade #2 this financial year (I think)

Forecasting / feel for the market not one of Comvita’s strong points

[Toddy]

This result is an absolute shocker. The sp would be well south of 1.70 without the offer hanging around.

I can still see an offer being made, but at what price. It's probably nothing to do with valutions, but more to do with a comfortable exit price that current shareholders would accept.

[Filthy]

This result is an absolute shocker. The sp would be well south of 1.70 without the offer hanging around.

& the offer might not even come through....

plus 1 more downgrade still to come! (some say 'they come in 3s')

[Balance]

Potential acquirer walks away ......

https://www.nzx.com/announcements/432051

[kiwikeith]

Potential acquirer walks away ......

https://www.nzx.com/announcements/432051

Goldmine Sacks earned some easy money there. They would have done a load of work calculating what a fair offer would be - and it turned out to be an academic exercise because it sounds like no offer eventuated.

[winner69]

Jeez CVT share price down on low 140's

Dave must be really peeved takeover he worked so hard on getting won't be going ahead.

Left with a dog of a performer...I reckon he will pack sad soon and move on ...or he might even get the heave ho

[Balance]

Potential acquirer walking away after CVT did an open kimono is bad bad news indeed - no other way to describe the situation.

Either the potential acquirer was never really that serious (if serious they would have made a bid, low it may be) or their due diligence uncovered enough negatives to make them run away.

The directors are at best naive or at worse, plain dumb to have done the open kimono.

[kiwikeith]

Potential acquirer walking away after CVT did an open kimono is bad bad news indeed - no other way to describe the situation.

Either the potential acquirer was never really that serious (if serious they would have made a bid, low it may be) or their due diligence uncovered enough negatives to make them run away.


The directors are at best naive or at worse, plain dumb to have done the open kimono.

If you want to be acquired, you have to open the kimono at some point. Every acquiring company will want to do due diligence. But I agree it is probably bad news as they probably found stuff they did not like.