Haier's bid for Fisher & Paykel Appliances now looks to be a done deal – it's upping its offer to $1.28 a share, which it says has been accepted by shareholders ACC, AMP Capital Investors and Harbour Asset Management.
Combined with its own 20 percent stake and the 17.5 percent stake held by Australian fund manager Allan Gray, which it secured in an agreement last month, Haier will have passed the minimum acceptance offer threshold of 50 percent.
F&P hasn't gone along quietly, and urged its shareholders to reject Haier's previous bid of $1.20 earlier this month.
But F&P's board has now agreed to accept the increased offer price and recommend investors do the same.
Independent advisers Grant Samuel have valued Fisher & Paykel Appliance at $1.28 to $1.57 per share, which places the new offer right at the bottom of the scale.
Liang Haishan, chairman of Haier New Zealand Investment Holding Company and president of Haier White Goods Group, said it was important for Haier to proceed with the 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."
The new offer of $1.28 a share represented a 71 percent premium to the pre-offer price of F&P shares, he said.
The offer closing date will remain at November 6, unless extended. The offer remains subject to certain regulatory approvals, including from the Overseas Investment Office.