The hostile $71.6 million takeover bid for honey-based manufacturer Comvita has seen a sustained gain in its share value, elevated well beyond the $2.50 offer from the Singaporean-based food manufacturer, Cerebos.
Since Cerebos lodged its offer last Friday, Comvita's shares have bounded almost 30%, from the pre-announcement price of $2.10 to trade steadily around the $2.70 mark yesterday.
The $2.50 offer price carried a 25% premium to the one-month average price during the previous month.
Comvita management labelled the offer opportunistic and said it undervalued the company, which is beginning to post healthy profits since listing in 2003, while Cerebos wants to delist Comvita and boost research and development by an unspecified amount, targeting expansion into Asia.
Independent reports are yet to be delivered to shareholders on Comvita's value and the Cerebos bid, but analysts say with the share price holding at $2.70 it appears Cerebos will have little recourse other than to raise its offer price.
Further undermining the Cerebos bid is a more than adequate blocking stake of one of Comvita's founders, staff and close associates amounting to a 30% block.
While Cerebos has made the offer conditional on gaining 90% acceptances, it has retained the right to waive that condition and take a stake of 50% or more.
