INDEPENDENT NEWS

Comvita touted as potential bidder for Manuka Health company

Published: Mon 30 Jul 2018 04:14 PM
Comvita touted as potential bidder for Manuka Health company
By Tina Morrison
July 30 (BusinessDesk) - Comvita, the NZX-listed manuka honey company, declined to comment on whether it is interested in making a bid for honey company Manuka Health New Zealand which has reportedly been put up for sale by its Australian owner Pacific Equity Partners.
The Australian newspaper suggested Comvita or its largest shareholder China Resources Ng Fung as possible buyers of Manuka Health, which was put on the market about six weeks ago for more than A$200 million by PEP and advisers Luminis Partners. Manuka Health was reportedly sold to the Australian private equity firm in 2015 for $110 million.
A Comvita spokeswoman said that as listed company, it was unable to comment on its interest or not in any potential acquisitions without first updating the market. While naming Comvita as a potential buyer, the Australian newspaper also said "the current vibe" was that it was not interested in buying Manuka Health.
Comvita shares last traded at $5.80, and have shed 30 percent of their value this year, taking its market capitalisation down to $264 million, after poor honey harvests hurt earnings. Demand for Manuka honey has soared in recent years on the back of its antibacterial properties and demand for natural health foods.
Other potential buyers for Manuka Health include Chinese private equity firm CDH Investments, which has a controlling stake in New Zealand vitamin brand Go Healthy; Chinese group Primavera which owns Australian vitamin group Vitaco; and global giant Unilever, according to Australian reports, although unidentified sources were cited saying some of those buyers were unlikely and potential Japanese buyers had shied away at the price tag.
Te Awamutu-based Manuka Health had revenue of $79.5 million and net profit of $3.5 million in the year ended June 30, 2017, according to its annual filing to the Companies Office. The company was founded in 2006 by Kerry Paul, with 78 percent of sales derived from exports.
(BusinessDesk)
ends
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

Government Exempts Some Home Improvements From Costly Consents
By: New Zealand Government
The New Zealand Herald Named Newspaper Of The Year, Website Of The Year At Voyager Media Awards
By: New Zealand Media and Entertainment
ASB Takes The Lead Again With New Low Home Loan Interest Rate
By: ASB Bank
The Problems With Testing And Case Statistics For Covid-19
By: Nathan Hoturoa Gray
Fletcher Building to lay off 1000 staff in New Zealand
By: RNZ
Driving prompt payments to small businesses
By: New Zealand Government
On Why We Should Legally Protect The Right To Work From Home
By: Gordon Campbell
Spark Welcomes Spectrum Allocation And Prepares For 5G Rollout Over The Next 12 Months
By: Spark
Bar reopening night 'much, much quieter'
By: RNZ
New Zealand’s population passes 5 million
By: Statistics New Zealand
Seven Weeks Of Clearing The Air Provides Huge Benefits: Scientist
By: NIWA
Tax changes throw cash lifeline to SMEs
By: New Zealand Government
Some Indicators Pick Up As New Zealand Moves Out Of Lockdown
By: Statistics New Zealand
Astronomers Discover The Science Behind Star Bursts That Light Up The Sky
By: University of Canterbury
International passenger numbers at Auckland airport drop 95 percent
By: RNZ
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media