Cerebos says it won’t lift its $2.50-a-share offer for Comvita and that the valuation range given by an independent adviser is not justified.
Cerebos Gregg’s chief executive George Crocker rubbished the price of $3.40 to $4, based on forecast earnings, given by Grant Samuel.
“The Cerebos offer was priced on our understanding of the risks inherent in the operations of Comvita and the manuka honey industry and the risks and costs associated with achieving continued growth in Asia. In our view, these factors do not justify a price anywhere near the valuation range indicated by the independent adviser’s report.”
The $71.6 million proposal closes on December 22.
Manuka honey product manufacturer Comvita said the company was about to see payoffs from years of careful planning and development.
Chairman Neil Craig described the Cerebos offer as unsolicited, unwelcome and opportunistic.
Idealog has been covering the most interesting people, businesses and issues from the fields of innovation, design, technology and urban development for over 12 years. And we're asking for your support so we can keep telling those stories, inspire more entrepreneurs to start their own businesses and keep pushing New Zealand forward. Give over $5 a month and you will not only be supporting New Zealand innovation, but you’ll also receive a print subscription, an Idealog t-shirt and a copy of the new book by David Downs and Dr. Michelle Dickinson, No. 8 Recharged (while stocks last).