Cerebos makes cash offer to buy Comvita

Singapore-based food group Cerebos has made a cash offer of $57m to buy New Zealand honey products company Comvita in an effort to diversify and expand its businesses.

While the offer represents NZ$2.5 (US$1.98) for each Comvita share, the company’s independent directors have advised shareholders not to sell and dismissed the offer as too low.

Comvita chairman Neil Craig said the offer by Cerebos is unsolicited, unwelcome, opportunistic and it undervalues Comvita by a considerable margin.

Comvita engages in the manufacture of health foods, ingredients and skincare products from honey, and its health food products include UMF Manuka Honey, Manuka Honey Bars and Manuka Honey Blend.

Last month, Comvita said it expected sales to increase 16% to NZ$95m (US$75.37m) and for profits to more than double to NZ$8.2m (US$6.5m) in the year up to 31 March 2012.

Cerebos is known for the Brand’s Essence of Chicken as well as sauces, herbs, salt, coffee and powdered drinks.