Tegel Group Holdings Ltd (ASX:TGH) (NZE:TGH) surged 42% to $1.07 after receiving a notice of takeover from a subsidiary of Bounty Fresh Food, Inc, one of the largest poultry companies in the Philippines.
The notice signifies that Bounty Holdings New Zealand Limited intends to acquire all issued shares in the New Zealand-based poultry supplier at a price of NZ$1.23 per share.
Dividend forms part of notice
Under the terms of the notice, Tegel is also permitted to pay a dividend of up to NZ 4.1 cents per ordinary share prior to closing of the offer, without adjustment to the offer price.
The notice is not an offer and will entitle but not oblige Bounty to make an offer at any date between May 10 and May 26, 2018.
Tegel’s board has appointed an independent sub-committee to respond to Bounty’s takeover notice.
Bounty has vertically integrated farm-to-plate operations incorporating breeding, raising, processing and retailing, including locally and via export to other parts of Asia.