Comvita receives takeover offer

Comvita receives takeover offer

New Zealand honey and wellness business Comvita has received an offer from a “credible offshore party” to acquire all of its shares, a day after booking a first-half loss.

The NZX-listed honey producer has attracted a “highly conditional unsolicited, indicative, non-binding proposal”, according to a statement. Comvita added the indicated offer price represents “a significant premium to the current share price”.

It appears that the unnamed party would prefer to implement any acquisition by a “negotiated scheme of arrangement” and Comvita said it has concluded an initial exchange of information.

Comvita marked a 7.8% drop in revenue year-on-year, reaching NZ$103m due to “weaker consumer sentiment in mainland China” and losing “some distribution with one customer” in North America.

Greater China revenue was NZ$45m, down 13%, and North America revenue was NZ$13m, a decline of 37%. Mainland China revenue for the half-year was NZ$33m, down 19% from the previous year.

The business “expects a steady improvement in consumption through the second half” and has “identified NZ$8m of specific cost savings to be made in H2 FY24”, according to a filing.

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