BayWa's stake in takeover target T&G inches higher

UPDATED January 10: Further acceptances by Turners and Growers' shareholders over the New Year break has edged Germany's BayWa's stake up slightly to 67.106% in its full takeover offer.

UPDATED DECEMBER 29: Further acceptances by Turners and Growers' shareholders over the Christmas break has lifted Germany's BayWa's stake to 66.087%.

As expected, BayWa has also extended the offer for a month as it awaits a decision from the Overseas Investment Office on its full takeover offer. The offer is now due to close on February 8 but further extensions have not been ruled out.

This also moves the date by when BayWa must declare the offer unconditional out 30 days to March 9.

Munich-based BayWa AG has reiterated it is content to be a majority (as opposed to full) shareholder in fruit marketer Turners & Growers.

The comment follows news that Scales Corporation (the apple processor sold off by South Canterbury Finance receivers) yesterday bought a 5.95% stake (with options to buy a further 4%) in NZX-listed T&G.

Scales Corp could own over 10% in T&G if it takes up the second purchase option, a large enough holding to block any full takeover.

BayWa launched a full takeover offer (as required for any bid for a stake between 19-50% in a listed company) in November. In mid December, it secured Guinness Peat’s 63.46% and reiterated today that the takeover offer is not conditional on achieving further acceptances.

The offer has been approved by the German Federal Cartel Office but BayWa is still waiting on a decision from the New Zealand Overseas Investment Office.

This is not expected ahead of the close of the takeover offer on January 9 so BayWa says it plans to extend the offer period.

BayWa’s takeover offer said it would delist T&G if it gained full control. Scale’s said, when announcing it’s share purchase, that it is committed to keeping the company listed.

BayWa operates in the agriculture, building materials and energy sectors and is listed on the Frankfurt stock exchange with a market capitalisation of about 1 billion euro.