NZ poultry giant set for takeover by Bountry Fresh
Nearly half of New Zealand’s biggest poultry producer, Tegel Group, have accepted the $309 million takeover proposal by Filipino poultry group Bounty Fresh.
Various reports said 46.1 percent of Tegel had already given support to the takeover bid of Bounty Fresh, a private-held company founded by businessman Tennyson Cheng. This includes the 45 percent stake held by Claris Investments, which is affiliated with Tegel.
Including the 16.3 percent stake it already owns, Bounty Fresh now owns a total of more than 62 percent of Tegel, meeting the 50.1 percent minimum acceptance condition.
Tegel processes about 58 million birds per year across vertically integrated operations in Auckland, Christchurch and New Plymouth, approximately half of New Zealand?s poultry. It produces a range of products across its core business (fresh and frozen whole chickens, fillets and portions), and value added convenience products.
Chen said the acquisition was in line with the group?s goal to expand beyond the Philippines.
Bounty Fresh operates a farm to market strategy, meaning it manages the entire supply and production chain.
It also has operations in egg production, hog farming, feed milling and the takeaway segment in the Philippines. In the last six years, Bounty Fresh has established over 1500 company?owned takeaway stores under three brands.