Asian interest in Australia’s food sector shows no signs of abating with Goodman Fielder telling the ASX this morning that it received an offer to acquire all of its outstanding shares over the weekend.
The offer of 65 cents per share came from 10.1% shareholder Wilmar International jointly with First Pacific Corporation. That is 10 cents above Thursday’s closing price of 55 cents a share and values the company at approximately $1.27 billion.
The premium of only 10 cents a share has resulted in the board of Goodman Fielder declaring in their releases to the ASX that, after considering the proposal with their advisers, it “materially undervalues Goodman Fielder and is opportunistic.”
Certainly a price chart of Goodman Fielder’s slide over the past 12 months might suggest it’s an optimistic bid on Goodman Fielder’s future as much as it might be judged opportunistic; investors have certainly not been enamored with Goodman Fielder if the price slide reflects their thoughts.
The market will be the judge in the end but it seems Goodman Fielder is now in play.