F&P says take no action on Haier offer yet

Last updated 11:09 27/09/2012

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Fisher & Paykel Appliances has reiterated its advice to shareholders urging them to holdfast on Haier's $1.20 per share takeover offer until an independent assessment of the bid is completed.

The company has made the statement in response to the Chinese bidder announcing yesterday that it had officially despatched its offer documents to shareholders.

Haier currently owns 20 per cent of the iconic kiwi firm and is looking to lift that to at least 50 per cent by November 6. F&P Appliances' said the independent Grant Samuel target statement is due on October 10.

In the offer document, Haier said its offer represents a 60 per cent premium to the price F&P Appliances was trading at before the offer was made, and represented good opportunity for investor cash out and reap capital rewards.

"This is an excellent offer and a very good opportunity for shareholders to realise cash from their Fisher & Paykel Appliances investment," said Liang Haishan, chairman of Haier New Zealand Investment Holding Company Ltd and President of Haier White Goods Group.

The Chinese company said it has already secured a lock- up agreement with Australian fund manager Allan Gray, which owns a 17.46 per cent stake in F&P Appliances.

Minority shareholder Tower Investments has come out swinging at the offer, saying $1.20 falls substantially short of the $3.31 per share it values the firm at.

Shares in F&P Appliances closed at $1.19 apiece yesterday.

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- BusinessDay.co.nz

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