Haier has lifted its offer for Fisher & Paykel Appliances by 8 cents a share, a move that has won over institutional shareholders as well as the takeover target's board.
The Chinese firm is now looking to buy F&P shares for $1.28 apiece, up from its original offer of $1.20. The revised price represents a 71 per cent premium on the level F&P shares were trading at before the offer was launched.
At the current level that's right at the bottom of the $1.28 to $1.57 per share value independent adviser Grant Samuels put on the firm, but has won support from institutional shareholders.
Accident Compensation Corporation has said it will sell its 7.2 per cent holding along with AMP Capital and Harbour of their respective 4.5 per cent and 2.4 per cent stakes.
Haier already owns 20 per cent of F&P shares, and has secured an agreement with Australian fund manager Allan Gray to buy its 17.46 per cent stake, giving it control of 51.56 per cent of the target firm's shares - over the 50 per cent mark its takeover was conditional on.
The Chinese company is still looking to take complete control of F&P though, and the company's independent board has now agreed to recommend that other shareholders accept the increased offer.
"While we differ with the valuation provided by the independent adviser, we are pleased to indicate our intention to provide an increased offer price to within the valuation range," said Liang Haishan, chairman of Haier New Zealand Investment Holding Company.
"We feel this allows our offer to move forward on a positive basis."
The offer closes on November 7.
F&P shares recently traded at $1.235, unchanged from before it was put into a trading halt earlier this morning.
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