Shareholders of Invercargill-based Blue Sky Meats should this week get a steer from its board on the $25.3 million takeover offer by Chinese-backed NZ Binxi (Oamaru) Foods Ltd.
Blue Sky chairman Scott O'Donnell had informed shareholders, via the Unlisted share trading platform, Blue Sky's target company statement was to be sent to shareholders no later than tomorrow.
It will include the recommendation of Blue Sky's board, which had been seeking expressions of interest in a sale, plus the independent adviser's report from Campbell McPherson on the merits of Binxi's offer.
NZ Binxi (Oamaru) Foods is a subsidiary of Heilongjiang Binxi Cattle Industry Co Ltd and late last year increased its stake in North Otago-based meat processor Lean Meats, now known as Oamaru Meats, to 100%.
So far, Mr O'Donnell had recommended shareholders ``take no action'', there being ``no benefit to accepting the offer early'', and await the target company statement.
Binxi's $2.20 per share offers an almost 70% premium on 29-year-old Blue Sky's recent trading price of $1.30 per share. The latter values the company at almost $15 million.
The Binxi offer, which must get Overseas Investment Office approval, is open until January 31. It seeks a 100% takeover but retains the right to waive that condition and have a minimum acceptance of 50.1% of shares.
