Royal Dutch Shell and PetroChina yesterday made a takeover bid for Australian coal seam gas company, Arrow Energy, reported to be worth at least $A3.3 ($4.3) billion.
Fisher Funds described it as “another windfall” for investors, including those in its KiwiSaver scheme.
Fisher has three of its managed funds with significant shares in Arrow (the Fisher Funds KiwiSaver Scheme, the Australian Growth Fund and listed company Barramundi Limited).
Fisher Funds said the $4.45 a share bid would benefit Arrow shareholders along with a share in a new entity comprised of Arrow’s international business.
Senior portfolio manager Frank Jasper said Fisher Funds had been long-term investors in Arrow, backing it when its share price was less than $0.60.
The non-binding, conditional bid caused Arrow’s share price (ASX: AOE) to jump by over 40% last night. Shares last traded at $A5.11
Managing director Carmel Fisher said Arrow was the second largest in its Australian portfolios after Pipe Networks (also under a takeover offer).
“This illustrates that our strategy of accumulating significant positions in market leading companies and waiting patiently for the market to recognise their value pays off for our investors.”
She said the new offer meant more than 20% of Fisher Fund’s Australian portfolio was under takeover offer.
Last month, a Mercer KiwiSaver survey for the quarter to December 2009 found the best performing fund for both the December quarter and the whole year was the Fisher Funds Growth Fund, which produced a return of 5.5% in the quarter and 48.4% across the whole year.