The Dom Post reports:
Haier looks likely to succeed in its takeover bid for Fisher & Paykel Appliances after lifting its offer for the Kiwi whiteware maker, according to an institutional investor.
The Chinese firm yesterday announced it would raise its offer by 8 cents to $1.28 per share, a level that comes in at the bottom of the $1.28 to $1.57 per share value range independent adviser Grant Samuel put on the firm.
The new offer has won favour with institutional shareholders Accident Compensation Corporation, Harbour Asset Management and AMP Capital, who have all agreed to sell the 14.1 per cent of F&P Appliances they collectively hold.
Haier paid about 80c a share for its existing 20 per cent stake in 2009 as part of make-or-break capital raising by F&P Appliances to stave off a potential debt default.
Haier has already secured an agreement with Australian fund manager Allan Gray to buy its 17.46 per cent stake, and now has control of 51.56 per cent of F&P Appliances’ shares.
Haier’s offer was conditional on getting over 50 per cent, although it would prefer a full takeover.
“Our view is this price should enable Haier to get 100 per cent of the company and we think it is very fair from a shareholder’s point of view,” said John Phipps, deputy head of New Zealand equities at AMP Capital.
“The implications of its sale to New Zealand are too important leave the takeover approval to officials. Such a major decision must be made by Ministers. That’s Labour’s policy.
Labour’s view is that they will decide, who can buy a private company listed on public sharemarkets. Such decisions will of course be based on populism. Labour seem determined to retreat into a xenophobic fortress NZ policy that we last had in the 1970s.
Can you imagine the horror of Ministers personally deciding on all NZ takeovers? We’d become rife for corruption amongst other things. You want to be able to buy a company – make sure you look after the Minister.Tags: foreign investment, Labour