Comvita has kicked back at a report suggesting Singapore-based CPG group Fraser and Neave (F&N) has taken a stake in the Manuka honey maker.
The Australian newspaper said this week F&N had acquired a “significant” interest in the New Zealand-headquartered group.
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However, responding to that speculation, Comvita announced today (6 March) it “is not aware of Fraser and Neave having acquired any stake in the company”, adding in a stock exchange filing: “As a matter of policy, Comvita does not comment on market speculation.”
Despite refuting the report, Comvita revealed last week it had attracted overseas interest for its plan to raise new capital under a wider recapitalisation programme after a takeover offer from Manuka honey rival Florenz fell through.
Florenz, also based in New Zealand, had lodged the bid in August but the deal failed to get the required majority approval from Comvita shareholders, despite the board giving the green light.
In a bourse filing on 23 February, Comvita declared the company had received “credible expressions of interest” from current shareholders and new investors to back and potentially underwrite the proposed capital raise.
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By GlobalDataComvita said part of the interest had come from “an offshore strategic investor in the food and beverage sector”.
F&N is a manufacturer of beers and soft drinks, including the 100Plus brand and its own Seasons range. It also supplies dairy products such as its namesake line of Magnolia and Farmhouse milks, along with King’s ice cream.
The company, which operates across South East Asia, had not responded to Just Food’s requests for comment on the Comvita speculation.
Comvita announced in December it was seeking to raise a targeted NZ$25m ($14.6m today), a level it deemed appropriate to support its recapitalisation.
In its 23 February filing, Comvita said the unnamed offshore investor had expressed a willingness to underwrite a capital raise at NZ$0.80 per share and at a level “materially above” the NZ$25m.
Alongside that news, Comvita reported its results for the six months to 31 December.
Revenue rose 18.3% to NZ$118m. Normalised EBIT climbed to NZ$10m, an addition of NZ$10.7m.
Net profit after tax was NZ$4.6m, compared to a loss of NZ$6.5m last year, which the company said represented a “material improvement”.
Net debt fell by NZ$13.7m to NZ$48.7m between June and December.
Comvita chair Bridget Coates said at the time: “We delivered against our first-half priorities, returning to profitability, generating positive operating cash flow and continuing to reduce inventory and net debt.
“Operational discipline is strengthening, leadership capability is being rebuilt, and the company is executing with consistency. These are important foundations, but the turnaround is not yet complete.”
