On May 28, 2018, Bounty Holdings New Zealand Limited initiated the takeover offer. This offer was for Tegel Group Holdings. However, on September 24, 2018, Tegel Holdings issued a press release which stated that the approval has been given from Overseas Investment Office with regards to the stated acquisition under Overseas Investment Act. Primarily, an offer of $ 1.23 per share was made by Bounty to acquire Tegel and the same has now been made unconditional.
As a result of this approval, the stock price of Tegel Holdings witnessed an upward momentum. On September 24, 2018, the stock recorded the gain of 4.76% and closed at A$1.10. As of September 24, 2018, the company had market capitalization of $373.7 million.
A Look at Tegel Group’s performance in FY 2018
Tegel Group Holdings ended FY 2018 with total revenues amounting to $615.4 million which implies the YoY growth of 2%. Domestically, the company’s revenues were helped by the positive momentum in the poultry demand. The share of plate gains coupled with the strong momentum in the population are the measures which are boosting the consumption of poultry. Domestically, the company’s top line got positively impacted by the easy meal solutions as well as because of the innovation related to the new products.
Talking about the company’s export division, its position with regards to the established markets got strengthened. In FY 2018, the company’s distribution costs witnessed a rise of 12.6%. During the same period, the company’s gross profit margin fell to 22.3% from 23.6% in the prior year.
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