Chinese forced to backtrack, upping offer price for appliance giant.
Haier has increases its takeover bid for Fisher & Paykel by $8c to $1.28 per share, after F&P’s Independent Directors heavily criticised the original offer price, and issued a “do not accept” recommendation to shareholders.
This latest move by the Chinese white goods giant, Haier, comes after it hit back at F&P’s Independent Adviser’s recent share valuation at $1.28 – $1.57 per share, as “overly optimistic”, just last week.
The revised offer price is at the lower end of this valuation, but was enought to win over Fisher & Paykel Independent Board, who now recommends shareholders accept the revised offer, Haier said today.
The Chinese white goods giant already owns 20% share in New Zealand based Fisher and Paykel. The takeover bid also includes its Australian entity.
Leading shareholders ACC, AMP and Harbour Asset Management have all confirmed they will accept the increased offer, with Fisher’s biggest shareholders, Allan Gray Australia, already in agreement with Haier’s takeover bid.
Once Haier receives formal acceptances from all shareholders, it will be home and dry to takeover the appliance giant as they satisfy the minimum acceptance condition of more than 50% shareholder approval.
Chairman of Haier NZ, Liang Haishan, said the support of the Independent Board to increase the offer was valuable and it was important to proceed with the Independent Board’s full support.
“While we differ with the valuation provided by the Independent Adviser, we are pleased to indicate our intention to provide an increased offer price to within the valuation range. We feel this allows our offer to move forward on a positive basis.”
“This will provide shareholders with both certainty and the opportunity to realise cash from their investment now, which is very attractive in today’s economic environment.”
However, the Shandong based company says it will make no further change to the offer before the takeover closing date of 6 November, unless extended in accordance with the Takeovers Code.