By Phil Boeyen, ShareChat Business News Editor
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Wednesday 20th March 2002 |
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GPG Orchards currently hold 19.99% of Enza and is offering to buy the rest at $1.20 per share, subject to a minimum acceptance of 50.1%.
The independent directors of Enza say they will shortly commission an independent report on the merits of the offer.
A spokesman, Brian D'Ath, is recommending that all shareholders refrain from selling their shares until they have had an opportunity to consider the independent report.
"It is likely to be six weeks before the final outcome of this share buyout is known. In the meantime, all stakeholders can be assured it will be business as usual for Enza."
GPG noted in its recent full-year announcement that while its proposals for change at Enza were not supported by sufficient shareholders at the recent annual meeting, the outcome was "probably only delaying the inevitable."
"There is a wider recognition that Enza needs stronger proprietorial drive and commitment to properly fulfil its role in the New Zealand pipfruit industry," the company said.
Another Enza shareholder, FR Partners, has confirmed that it will sell its 20% holding to GPG for the $1.20 bid price.
"Following last month's AGM it was apparent to all other shareholders that GPG and ourselves had a very different approach to the Enza business," says spokesman Bill Birnie.
"After the AGM we approached GPG to enquire as to whether or not they would sell their stake. GPG declined this approach and counter offered to purchase our shareholding." he said.
Mr Birnie says it is not in the best interests of the company, its staff or its suppliers that there are two hands on the tiller and "accordingly, we have reluctantly concluded that best course for all parties is to accept the GPG offer"
Enza shares closed up 6 cents on Wednesday at $1.16.
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