Australian food company Goodman Fielder has rejected an A$1.27bn ($1.18bn) takeover offer made by Wilmar International, a 10.1% shareholder of Goodman Fielder, jointly with First Pacific Company.
As per the non-binding, highly conditional proposal received by Goodman Fielder, the two Asian companies plan to acquire all the issued equity in the company at a proposed price of A$0.65 per share.
Following discussions with its board and representatives of Wilmar and First Pacific, the Australian food firm announced that the offer materially undervalues the company.
The company also said it will continue to assess other opportunities to maximize shareholder value.
Two years ago, Wilmar had considered a proposal for Goodman Fielder when it made its initial investment in the Australian food company; however, the two companies did not agree on a price at that time.
