New Image Group chairman Graeme Clegg is moving to take the colostrum-based health tonic maker private, saying a sharemarket listing no longer makes sense for the company.
On the same day the company disclosed the bid it announced the resignation of chief financial officer Murray Page, who was hailed as a talented individual at the annual meeting last November.
New Image Trustee Ltd, a company controlled by Mr Clegg, is offering 26 cents a share. The offer, which closes on March 29, is subject to a number of conditions, including acceptances of 90 percent, which triggers compulsory acquisition.
In October, Mr Clegg announced the purchase of a 10.1 percent stake held by HWM (NZ), formerly known as Huljich Wealth Management, in two steps to avoid having to make a full takeover. The price was 26 cents a share.
The share price fell 3.7 percent to 26 cents after the full takeover was announced.
Independent directors Max Parkin and Nigel Sinclair are advising shareholders to take no action while they appoint an independent adviser. Shareholders will receive a target statement as required under the Takeovers Code.
The company was originally listed 13 years ago. Mr Clegg says in the takeover documents that a listing on the New Zealand stock exchange no longer made sense.
"In simple terms, New Image has no need for further capital, is too small, has too few shareholders, and its shares traded too infrequently for it to remain as a listed vehicle."
The offer values the company at $61.1 million.
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