Blue Sky Meats' board is advising shareholders to wait for the outcome of negotiations over the Chinese-backed NZ Binxi (Oamaru) Ltd's takeover bid.
Blue Sky shareholders met in Invercargill last week to discuss the $25.3 million offer by Binxi of $2.20 a share.
Binxi, which already owns 13.5% of the Southland-based meat processor, recently extended its offer period until February 18.
An independent advisers' report by Campbell MacPherson released last month assessed Blue Sky's share value as being in the range of $1.93 to $2.21.
Shareholders were told last week that $2.50 a share was the price at which directors would recommend the offer.
They were told they had three main options; wait for the board to negotiate the price with Binxi, which was what the board recommended; reject the offer and continue to hold shares and retain the company in local hands; or accept the $2.20 offer.
If they accepted the offer, Binxi would not buy and pay for shares unless it declared the offer unconditional.
To declare that, the company must receive acceptance that would provide it with majority ownership and Overseas Investment Office consent. Neither of those things had occurred yet.
A strategic review of Blue Sky was nearly complete and had identified $7.7million of ''opportunity and potential'' by 2020.
Blue Sky recorded an after-tax loss of $1.96million in the year ended March 31 last year.