The world's largest whitegoods manufacturer, Haier Group, has announced it will bid NZ$1.20 per share in cash for the 80% of Fisher and Paykel Appliances shares it does not already own.
Haier said Fisher and Paykel Appliances' (FPA) independent directors supported the bid, as long as it was within or above the independent advisers' valuation range and as long as there was not a higher bid.
Haier, which rescued New Zealand's major whitegoods manufacturer from bankruptcy in 2009 by buying a 20% stake in the company, said it planned to retain Fisher and Paykel's premium brand, its New Zealand local management and its New Zealand development base. It said a Haier-owned Fisher and Paykel would create more opportunities for employees over time. It made no comment about job losses or the future of Fisher and Paykel Finance or its manufacturing operations.
“We want the Fisher & Paykel Appliances brand to stay and we will support its growth as a global premium brand, with the additional advantages of operating within the Haier Group,” said Liang Haishan, Director of Haier and President of Haier White Goods Group.
“We also wish to retain the existing Fisher & Paykel Appliances development base in New Zealand and to support the future growth of Fisher & Paykel Appliances’ product development capabilities," Liang said.
Haier also valued the quality of Fisher & Paykel Appliances’ management and employees, he said.
“Should our proposed offer be successful, we wish to retain their technical and operational expertise and business development capabilities. We think the opportunities for Fisher & Paykel Appliances’ employees will increase over time as a result of our greater involvement.”
Haier's bid of NZ$1.20/share is 60% above the price on Friday before it was announced Haier was about to approach shareholders with a bid.
“We believe our proposed offer for Fisher & Paykel Appliances represents excellent value for shareholders and will be well received by them,” Liang said, adding the bid was 91% above the volume weighted average trading price over the three month period up to and including Friday.
“We believe the opportunity to receive cash and realise 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.
Haier said Allan Gray Australia Pty Ltd, which is the largest shareholder after Haier and holds 17.46% of Fisher & Paykel Appliances shares, had agreed to accept the bid of NZ$1.20/share.
The proposed offer is subject to a minimum acceptance condition that Haier holds more than 50% of the Fisher & Paykel Appliances shares. After Allan Gray's acceptance, it will own 37.46% at a minimum.
Liang said Haier had "great respect for Fisher & Paykel Appliances’ history, achievements and organisational culture.
Haier said it saw Fisher & Paykel Appliances remaining as a stand-alone company led by local management. "It supports the direction of Fisher & Paykel Appliances’ current business strategy. The transaction will also help facilitate a closer partnership between the two companies," it said.
Mr Liang said Haier also values the quality of Fisher & Paykel Appliances’ management and employees.
Haier also proposes that the existing ratio of New Zealand or Australian resident independent directors on the Fisher & Paykel Appliances board be maintained for at least two years.
UBS AG has been retained as financial advisor and Simpson Grierson and White & Case LLP as legal advisors.
13 Comments
As the saying goes.... "neo how mao lin pin chin xat xming trixy pon dif goooocchch et il min hij kin min pin".... or, "may your dishes always shine brightly and may your peasent farmers improve their lot by owning the intellectial property of the last great bastion of New Zealand industrialisim... I guess it beats getting invaded in the military sence.
Another chunk of Kiwi intellectual, industrial and real property sold off. Fran OSullivan will no doubt be delighted but check this out. Net International Investment Position, guess who's the third worst in the developed world? That's right, worse than Greece and Spain.
http://en.wikipedia.org/wiki/Net_international_investment_position
Foreigners (as of 2009) own $167,000,000,000 more of our assets and debt than we own foreign assets. Put another way, we sometimes have a trade surplus of around 1,000,000,000, so only 167 years worth of trade and we can get ourselves up to zero! Well not quite, 'cause all these foreign assets/debt require interest or profits to flow to their owners, pushing our current account deficit out to a forecast 13 or 14 billion per year. The liabilities are now growing at about double the nominal growth in the economy. Yikes!
Question: Why is this not front and centre of every discussion on our economy and future as a sovereign nation?
I was talking to some people the other day - before all this came about - and asked them if they had heard of Haier appliances. 'Oh yeah, I think they're german aren't they?'
Well not quite I said, it's made to sound german. Now I'm not sure if Haier it actually has a chinese meaning or definition.....but in german Haier means SHARKS!!
No coincidences here...they were already circling when they took out the 20% stake and were just waiting for the legs to tire from treading water for so long. RIP F&P!!
Depends on the model/type. F&P did a draw one that leaked and badly, ruined a few ppls kitchens.
But Im sure if you looked every vendor has a lemon in the closet. One thing I do know in the last 10 months F&Ps customer care has been the worst Ive ever experience in a company. I wont be buying anything of theirs again willingly.
regards
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