A takeover of Comvita by Manuka honey rival Florenz has come to nothing after failing to get the required number of shareholder votes.
New Zealand-headquartered Comvita said today (17 November) that the so-called scheme of arrangement was not approved by a majority at a meeting on Friday. The two companies have mutually agreed to “terminate” the proposed deal.
In today’s stock exchange filing, Comvita chair Bridget Coates said its board “is continuing to advance alternative options, including a recapitalisation process”.
The board had approved the takeover approach by the Wedderspoon Organic Manuka honey maker, also based in New Zealand, in August.
At the time, Coates had explained the difficulties the business was facing.
“Recent years have been challenging for Comvita and its shareholders, with sustained sector pressures, softer market conditions and the demands of a complex turnaround weighing on performance,” she said.
“Comvita has faced ongoing pressure from structural changes in the Manuka honey sector, which continues to face oversupply, price and demand volatility, and intense competition, including online.”
A trading update issued in October for the first quarter of fiscal 2026 noted Comvita had net debt of NZ$67.4m ($38.2m), while the company generated an EBIT profit of NZ$0.7m, better than an anticipated NZ$1.7m loss. It was also an improvement from the NZ$2.8m loss posted in the same quarter a year earlier.
EBIT for the full year was forecast at NZ$13.5m.
Revenue for the first quarter of the new year was NZ$45.6m, above Comvita’s estimate of NZ$43.8m and the NZ$42.3m a year earlier.
Coates said today: “The board has been working with its advisers and banking partners to evaluate a range of funding options as part of its contingency planning.
“Our current intention is to assess options to recapitalise the company. This work is progressing with urgency and discipline to secure a solution that stabilises the business, positions it to grow again, and reduces ongoing risk to shareholders.”
The challenges were more evident for Comvita when it announced its 2025 results in August, including renegotiated lending terms.
A working capital arrangement was reduced to NZ$24m from NZ$44m while the company’s debt facility was extended to 1 March.
“These revised terms provide short-term stability but the company’s lenders have been clear that a longer-term recapitalisation solution will be required,” Comvita said.
A full year fiscal 2025 loss for net profit after tax in the 12 months through June was reported of NZ$104.8m, widening from a NZ$80.4m loss a year earlier. Revenue dropped 4% to NZ$192.5m.
