However, a separate independent advisers’ report by Campbell MacPherson released yesterday, assessed Blue Sky’s share value as being in the range of $1.93 to $2.21, but made no specific recommendation on selling or holding.
Campbell McPherson noted the $2.20 offer provided an opportunity for shareholders wishing to exit "to do so at a significant premium to the last traded price", which was $1.30.
Also in the target company statement to shareholders, released on the Unlisted stock trading platform, Blue Sky’s board told shareholders to wait until mid-January before making a decision on the offer.
Blue Sky’s board had "started preparing a new strategic plan" to "effect positive change and improved financial performance", Blue Sky’s chairman Scott O’Donnell said in the statement.
The "wait" recommendation appears unusual, given Blue Sky had earlier in the year sought to identify a buyer, interested parties being invited to submit proposals.
Binxi, which already owns 13.5% of Blue Sky, made its $2.20-a-share, $25.3million offer a month ago, which was an almost 70% premium on the then trading price of $1.30.Blue Sky’s board "asked Binxi to delay its offer, in order to provide further time for management to work on the strategic plan, so that your board was better placed to give guidance to shareholders", Mr O’Donnell said.
"However, Binxi refused to give us the time we asked for."
Just before Binxi delivered its offer, Blue Sky’s new board and new chief executive had started preparing a new strategic plan designed to produce a new three-year strategic plan, to achieve significant operational efficiencies and business improvements, Mr O’Donnell said. Blue Sky’s Invercargill sheep and lamb plant was not profitable last season and it had invested heavily in a new Gore beef plant, which had not performed to expectations.
"The strategic planning process is a work in progress and is at an early stage," Mr O’Donnell said.
"For clarity" the board was not advising shareholders to accept or reject Binxi’s offer, but to wait to allow the board and management more time to work on the strategic plan.
"We will write to you in mid-January, before Binxi’s offer closes, with that guidance," Mr O’Donnell said.
● Binxi’s 13.5% stake came from its November 16 purchase of shares from Graham and Jill Cooney, who sold one million of their 1.1 million shares for $2.20 each.
Mr Cooney until recently was Blue Sky’s chairman.
