Goodman Fielder turns down $1.17bn takeover bid

Australian food company Goodman Fielder has rejected a A$1.27bn ($1.17bn) joint takeover bid from Singapore-based Wilmar International and Hong Kong-based First Pacific.

The firms have offered A$0.65 ($0.60) per share, which is an 18% premium over Goodman Fielder’s last closing price of A$0.55 ($0.51) per share on 25 April 2014.

According to Goodman Fielder, the bid is opportunistic and materially undervalues the firm.

The Goodman Fielder board said that it remains focused on maximising shareholder value and will be constructive in relation to proposals which are consistent with this objective.

In a statement to the Singapore Exchange, Wilmar said that if the deal had gone through, Goodman Fielder would have been equally owned by Wilmar and First Pacific.

Earlier this month, Goodman Fielder issued a trading update where it warned its full-year profits could be 10%-15% below analysts’ expectations, due to poor business conditions in Australia and New Zealand.

The company also said that it had delayed a cost savings plan for its manufacturing and supply chain units.

Goodman owns some of leading brands in Australia, including Meadow Lea margarine and Praise condiments.

The company’s other brands include White Wings, Pampas, Mighty Soft, Helga’s, Wonder White, Vogel’s (under licence), Meadow Fresh, Irvines, Flame and Crest.

The firm produces and distributes staple foods such as bread, milk, salad dressings, margarine, cooking oils and flour in Australia, New Zealand and the Pacific Islands.

Wilmar, which is the largest palm oil producer in the world, already owns a 10.1% stake in Goodman Fielder.