Comvita's independent directors have reiterated their "don't sell'' advice to shareholders, pending an independent report on Cerebos NZ's $2.50 a share takeover offer for the natural health and skincare company.
Singapore-owned Cerebos NZ's $2.50 per share offer price was exceeded immediately after the bid was announced on October 14. The stock traded today at $2.70, down 1c.
Cerebos is not permitted to buy in the market and currently does not own any shares in Comvita. It has until November 14 to send its offer to shareholders.
A "target company statement'' will be sent by Comvita within 14 days of the date it receives notice that the Cerebos offer has been sent out.
The statement would include a detailed report on the merits of the offer prepared by an independent adviser, Grant Samuel, and a recommendation to accept or reject it, Comvita said.
"In the meantime, our strong advice to shareholders is do not sell your Comvita shares and await further information and a recommendation from the independent directors,'' chairman Neil Craig said in a statement.
A source close to the Cerebos camp said the company was happy to bide its time while the process of mailing out offer documents took place.
He said Cerebos was confident the independent valuation would not be too far off its $2.50 offer price, made on October 14.
Comvita, which uses manuka honey in many of its products, sells to more than 14 countries through a network of wholesale and third-party outlets.
The offer values the company at about $72 million.
