Goodman accepts Allied offer
The directors of Goodman Group, Ltd, decided today to recommend to shareholders that they accept a take-over offer from Fielder Holdings (NZ), Ltd, a wholly owned subsidiary of the Australianbased Fielder Gillespie Davis, Ltd. The offer is five Fielder shares for every four Goodman shares. In a statement after the board meeting in Wellington, the group chairman, Mr
Pat Goodman, said the recommendation was a positive response to Fielders’ initiative in bringing together the three food companies of Goodman, Fielders, and Allied Mills, Ltd. The combined group should have a turnover of more than SNZI.B billion and assets of $1.5 billion. Mr Goodman said that the board’s analysis indicated that it should be possible to establish an annual
maintainable profit — attributable to ordinary shareholders — of ?135M on a lower capital base than at present existed for the three individual companies. This should produce earnings of 39c per share — the equivalent to 49c per existing Goodman share. Our directors expect that substantial benefits in the region of S2OM after-tax will result from full utilisation of production, distribution, and marketing functions in the edi-
ble oils and flour milling operations, together with the benefits of reduced overheads,” Mr Goodman said. “The combination of Goodman and Allied expertise in edible oils and all three companies’ expertise in flour milling and baking should further enhance profitability," he said. At yesterday’s exchange rate, and based on the current Fielder share price, Goodman shares were valued at 442 c compared with 370 c yesterday. “While the value is less than the board believes Goodman shares would command in a normal take-over, we are confident that the future benefits from participating in this merger represent a valuable growth opportunity for all existing shareholders.” The statement said Good-
man also intended to accept the offer made by Fielder for its shareholding of 14.3 per cent of Allied Mills, Ltd, in preference to an alternative cash bid from Euling Pty, Ltd. Details will be sent to shareholders late next week.
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Press, 17 January 1986, Page 8
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335Goodman accepts Allied offer Press, 17 January 1986, Page 8
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