Has happened before but Bounty's and Tegel's lawyers will be chomping at the bits to take OIA to court for a judicial review if the decision to decline is blatantly a political one.
Lawyers love situations like these - fee bonanza!
Printable View
Sellers looking nervous .......
94% accepted takeover - seems nearly everyone is in favour of takeover.
wonder if the oio take account that the majority of shareholders favour the deal?
Now that 90% is cleared the price at $1.13 is really only saying OIO is a 75% chance of approving the deal. Anyone who buys at $1.13 will get $1.23 if OIO say yes as its exceptionally unlikely Bounty won't compulsorily acquire the 4-5% at most that haven't accepted. It's either a very easy 9% return over a few weeks or a lot of pain (back to 80-85c?) if for some bizzare reason OIO rejected Bounty.
Looks like another food company we are losing control of for good.Hope OIC stop it, shouldn't be allowed.
I blame the cycle myself, it will turn and Mgmnt learn, or be replaced. not so easy to replace another NZ food company.
its actually majority owned by overseas owners now , therefore not a nz company only listed here. if its taken over it will be replaced by better owners , it just wont be listed anymore.
the majority of people wish to sell out as well so there a vote in favour of the new owners
I hope OIC turn it down i really do.
id love to buy heaps @ 80c and wait for the cycle to turn ,absolutely not kidding bud.
What is likely to happen if the current management is allowed to continue as they have been doing protected by some sort of cloak of kiwi sanctity.
1. This business will close and workers will loose their jobs.
2. There will be less competition in the market so consumers will end up paying more for chicken.
3. Mum & Dad investors (including their retirements funds in Kiwi Saver) will have blown their doe.
Boop boop de do
Marilyn
Boop boop poop
International grain pricies (esp Australia) have an outlook to go up so I doubt Tegal are going to be in a positive cycle in the near term anyway.
Jeez bill thats one reason we are at the bottom of the cycle cheep grain. Higher prices higher margins for tegel.
The other unfortunate situ was Ingham and Tegel expanding at the same time a while back partly due to the low feed prices.
Quite a moat/barrier there to replicate what Tegel have , look at the Northland Barriers re building a new facility.
Only 10 more days to gain OIO approval .....
Ministerial level decision. Up to Sage and associate min of finance.
I think any food produced in vol in NZ could be treated as sensitive assets. Its what we do best and what we rely on export wise although Tegels exports are not much atpit they could grow to become one with advantages (like free of most diseases)over other countries.
Purchasers at $1.17 .... Either big gamble or in the know ....
Last day Monday
So, apparently today's the day! But do we have until 'market close' or midnight to find out the decision?
5 pm today? or is after they have finished watching tiger win his first major for 5 years
declared unconditional finally!
So nearly all our chicken production is owned by overseas companies now, whats next? A sad day for our country imo.
suffering s/h will be able to re invest there funds into something better hopefully.
What do we do best in NZ, produce food. I dont think its sensible not owning our own food producers, what's going next? Lets change the co op structure and sell off Fonterra as its NOT currently doing a good job for our farmers or NZ . Very short sighted and money orientated , sad day for NZ . Look at the big picture and not your selfish small bubble instant gratification pockets. Attn span of a fish imo. Bounty bringing in slave labour next?
What nonsense.
Trying to change your assertion (false) that almost all of NZ's chicken production has passed into foreign hands when that has been the case since 1992!
It's actually thanks to the foreign ownership that chickens became cheap and readily available. I can recall the times during the 1980s when chickens were prohibitively expensive in NZ vs other countries, especially Asia.
Aint nobody here but us chickens:t_up:
35 Breeder farms (with additional outsourcing to 5 farms)
3 hatcheries
93 farms There goes more of our land & facilities, overseas.
3 major plants
5 distribution centres (2 independent)
Now owned by a philippine company and all profits leaving NZ.
Scales next?
Bounty wants to use its own sales and distribution channels to sell Tegel products to boost exports to the Philippines and Indonesia and to supplement export growth into Asia.
http://business.scoop.co.nz/2018/09/24/oio-approves-bounty-holdings-bid-to-buy-tegel-group/
isnt that good for nz?
I didn't opt to sell my shares, so do I continue to remain a (very) minor shareholder?
Have you been overseas for a while ace with no internet?
within 7 days of it going unconditional
Instant gratification sorta society we've become . Now all profits go offshore, an iconic kiwi brand as well as all those farms land and facilities. will they also be bringing in cheap phillipina contract labour.? What we do best , produce food thats owned by overseas companies. What next, whats left. Any iconic brands left, not Watties.More dairy and beef and sheep farms, why not .US$ can pay more and put them out of reach of kiwis but who cares , Houses too why not, pushed prices up. Short termisim at work imo.
Profits go offshore? You are making a huge assumption of a one way traffic and sounding suspiciously like the NZ First broken record of xenophobic BS.
1. What about the monies paid to NZers for the businesses? Disappeared into thin air?
2. What about the bad stories where offshore companies end up losing big after buying NZ businesses? Examples - Yellow Pages, Fletcher Paper, Goodman Fielder, numerous meat plants and freezing works, Auckland CBD apartments by the hundreds of millions of dollars of losses etc etc.
In economics, it is all about optimization of funds - funds released through the sale of something could be used for something which the seller can add more value.
I would like to think so.
sayonara
LOUIS JORDAN Ain't Nobody Here But Us Chickens (1956)
May have to be KFC tonight followed by a Bounty bar - money in the bank !
I always find these sort of numbers from Stats NZ interesting
From the latest Balance of Payments report for March 2018
Of New Zealand’s $242.6 billion total investment abroad, 60.1 percent was in the United States of America, Australia, and the United Kingdom.
Of the $398.9 billion foreign investment in New Zealand, 56.2 percent was from Australia, the United Kingdom, and the United States of America.
Fascinating numbers indeed!
Would be more fascinating if the numbers also include what kind of returns are made by the investments?
A guess would be :
On NZ investments offshore - 2.1% pa (think Air NZ, Telecom, Fletcher, Michael Hill, Fisher & Paykel, Pumpkin Patch, Fonterra etc etc)
On offshore investments in NZ - 25% pa (think Apple, Google, ATM, Xero etc etc).
This gives you some idea of returns by NZ investing overseas and foreigners investing in NZ. Heaps more (profits) leave NZ than come in
From Stats NZ
Primary income deficit narrows
Primary income flows between New Zealand and the rest of the world represent income earned from investments and compensation of employees.
Portfolio investment income earned by New Zealand investors abroad rose $358 million, to $1.0 billion over the June 2018 quarter. In the same period, the portfolio income earned by overseas investors in New Zealand increased $334 million, to reach $1.4 billion; the highest level since the $1.4 billion income in the June 2008 quarter.
Direct investment income earned by New Zealand investors abroad rose $118 million, to $143 million. In the same period, direct investment income earned by overseas investors in New Zealand rose $19 million, to $2.4 billion.
Looks like being bought out did not make Tegal any luckier.
https://i.stuff.co.nz/business/11676...virus-outbreak
Holders have dodged a bullet.
Wonder how Tegel going these days
https://www.rnz.co.nz/news/country/4...-by-10-percent
How good is that Louisiana chicken?! Gives kfc a run for its money
Seems the Tegal takeover was really a get out of jail card after all
Still a bit of a disaster
https://www.nbr.co.nz/business/turni...e-tegel-train/
Prob paywalled
Business Desk reporting this morning Tegal have turned a corner for Bounty Foods - made $3.6m after a loss of $10.12m in 2022.
It is damn hard if not impossible to know just how profitable (or not) overseas owned businesses are when they operate in NZ with our pathetic tax enforcement regime. It is normal practice for the parent companies to extract all manner of fees (management, consultancy, service etc etc) and use transfer pricing (refer Apple & Google) to reduce their profits and hence, relatively high taxes in NZ.