$71.6 million bid for Comvita Limited

News Release
For Immediate Release

Cerebos New Zealand Limited makes $71.6 million bid for Comvita Limited

[Auckland, New Zealand: 14th October 2011]

Cerebos New Zealand Limited, an associate entity of leading coffee and food manufacturer Cerebos Gregg’s Limited, has delivered a Takeover Notice to Comvita Limited (Comvita). Cerebos New Zealand Limited proposes to make a takeover offer to acquire all the shares, including partly paid redeemable shares, in the Bay of Plenty-based producer of honey based products for a cash consideration of NZ$71.6 million.

The offer price of NZ$2.50 for each ordinary share represents a 19 per cent premium to the closing price of Comvita’s shares on the NZSX yesterday (Thursday, 13 October 2011). The offer price is also a 25 per cent premium to the one month Volume Weighted Average Price (VWAP) and 38 per cent premium to the three month VWAP up to and including Thursday, 13 October 2011.

Trevor Kerr, the Chairman of Associate Company Cerebos Gregg’s Limited said the cash offer from Cerebos should be highly attractive to Comvita shareholders in its own right and even more so if the current market turmoil leads to further economic uncertainty.

“The proposed offer is conditional on 90% acceptance and certain other conditions specified in the proposed offer document. If the offer is successful, Cerebos intends to de-list Comvita and operate it as a Bay of Plenty-based subsidiary company on a largely standalone basis.”

Cerebos New Zealand and Cerebos Gregg’s are wholly owned subsidiaries of Cerebos Pacific Limited - a leading food and health supplements enterprise with its corporate headquarters in Singapore and listed on the Singapore Exchange Securities Limited.

In Asia, Cerebos Pacific’s flagship product, BRAND’S® Essence of Chicken is the category leader with its main markets being Thailand, Taiwan, Singapore, Malaysia, Hong Kong and China.

In New Zealand, many Cerebos brands are household names. These include Gregg’s, Robert Harris, Bruno Rossi, Atomic and Caffe L’Affare coffees, Raro and Refresh powdered beverages, Gregg’s herbs and spices, Cerebos salt, Bisto gravies, Cerebos and Whitlocks condiments and sauces, and Gregg’s desserts.

George Crocker, CEO of Cerebos’ Food and Coffee Division says the Cerebos group has a record of investing in its New Zealand assets. It recently invested in a $13 million expansion at Dominion Salt in Mt Maunganui in which it is a 50 per cent joint venture partner and is currently making a $6 million investment in New Zealand’s only instant coffee producing plant in Dunedin.

“We are committed to the long term by providing the funds necessary to grow the business, like we do Atomic, Caffe L’Affare and Dominion Salt,” Mr Crocker says.

Mr Kerr says Cerebos’ intention for Comvita is to take a similar long term view and focus on sales growth and achieve higher value for its honey.

“Cerebos would be looking to explore areas of collaboration. In particular, we can provide strategic assistance in sales and marketing in Asia where the Comvita brands are not yet well established. We believe the business has potential which can only be fulfilled by an increased investment in research and development and brand building – even at the expense of short to mid-term profitability.”
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