Listed honey company Comvita has disclosed an unsolicited, non-binding indicative offer for all shares from a credible overseas party, at a significant premium to the current share prices.
The proposal is highly conditional, and the party has indicated it would prefer to implement any acquisition by a negotiated scheme of arrangement.
The Comvita share price jumped 90c on the news, from $1.75 to $2.65.
However, it had fallen by 50% over the past two years, down from $3.50.
Comvita has retained financial advisers and will assist in a due diligence process.
“There is no certainty that the indicative offer will result in any negotiated transaction for shareholders to then vote on,” the company said.
“Comvita shareholders do not need to take any action at this time.”
Meanwhile the interim results to December 31 showed 32% reduction in earnings to $9.5 million and a 7.8% reduction in revenue to $103m.
The guidance for the full financial year is for revenue to be $225m to $235m and earnings between $30m and $35m.
“The outlook is driven by reduced consumer demand, most notably in Comvita’s largest market, China, and a moderation in North American demand coupled with a distribution change.”
