MANILA, Philippines - Haier Group, the 20 percent cornerstone shareholder in Fisher & Paykel Appliances Holdings Ltd (Fisher & Paykel Appliances), announced recently its intention to make a cash offer at NZ$1.20 per share for all of the remaining shares in Fisher & Paykel Appliances that it does not already hold.
Fisher & Paykel Appliances was issued a takeover notice recently by Haier New Zealand Investment Holding Co. Ltd (Haier), a subsidiary of Haier Group.
“We believe our proposed offer for Fisher & Paykel Appliances represents excellent value for shareholders and will be well received by them,” said Liang Haishan, director of Haier and president of Haier White Goods Group.
The proposed offer price represents a significant 60 percent premium to Fisher & Paykel Appliances’ share price as at the close of trading last Sept. 7, being the last trading date prior to Fisher & Paykel Appliances advising the market of a potential takeover offer from Haier. The proposed offer price also represents a 91 percent premium to the volume weighted average trading price over the three month period up to Sept. 7.
“We believe the opportunity to receive cash and realize a significant premium over the current share price is attractive for Fisher & Paykel Appliances’ shareholders, particularly given market volatility, recent economic uncertainty and the competitive nature of the global white goods sector,” Liang said.
Fisher & Paykel Appliances’ independent board is supportive of Haier’s offer, subject to the offer price being within or above the independent adviser’s valuation range, there being no superior alternative for Fisher & Paykel Appliances and its shareholders, and the terms and conditions of the offer being acceptable.
Liang also noted that Allan Gray Australia Pty Ltd, which is the largest shareholder after Haier and holds 17.46 percent of Fisher & Paykel Appliances shares, has entered into an irrevocable agreement to accept the proposed offer. This represents a strong endorsement of the value of the proposed offer.