Fisher & Paykel's independent directors have come out fighting, urging shareholders to reject Haier’s takeover offer.
In a statement released this morning, they said independent advisers Grant Samuel have valued Fisher & Paykel Appliance at $1.28 to $1.57 per share.
Haier's offer is for $1.20 a share. It already owns about 20 percent of the business and has an agreement to nearly double its stake by purchasing Australian fund manager Allan Gray's shareholding.
Haier's insisting its cash offer represents "excellent value", however, at a 60 percent premium to F&P's share price at close of trading on September 7, the last day before the takeover offer was announced to the market – and a more than 90 percent premium to the volume weighted average trading price over the three month period prior.
Chairman of Haier New Zealand Investment Holding Company and president of Haier White Goods Group Liang Haishan believed Grant Samuel had placed substantial weight on F&P's five year strategic plan in determining its valuation.
“This is appropriate and we also considered this information when determining our offer,” he said.
“There is a high degree of risk regarding the implementation of the five year strategic plan and achievement of the goals set out in it. In determining the offer price we have applied our significant, first-hand knowledge of Fisher & Paykel Appliances and the highly competitive global white goods sector, together with a consideration of the economic environments Fisher & Paykel Appliances."
He said shareholders would need to decide whether they were willing to take the "significant risk" inherent in attaining its five year strategic plan, or accept the Haier offer – "which, if successful, provides shareholders a certain cash payment and is just 6.7 percent lower than the bottom end of the independent adviser’s valuation range".
He warned F&P's share price would likely decline significantly if the takeover failed.