11 Nov 2011

German company offers Turners and Growers takeover

7:02 am on 11 November 2011

A German fruit supplier has launched a $285 million takeover offer for Turners and Growers.

BayWa has already reached a deal to buy Guiness Peat Group's 63% stake in the company.

Munich-based BayWa has a market capitalisation of more than $2 billion and specialises in trading agriculture, building materials and energy.

BayWa says the deal will enable it to expand into Asia and other markets, making it one of the world's leading suppliers of fruit.

It says it intends to run Turners and Growers as a standalone business and will focus on increasing returns to apple growers.

The $1.85 offer price represents a 9% premium to Turners and Growers' closing share price of $1.70 on Wednesday.

Under the takeovers code, BayWa is required to make a full takeover offer for Turners and Growers' shares.

However, it is understood the company is relaxed about Turners and Growers remaining on the New Zealand sharemarket.

London-based GPG supports the offer, while Turners and Growers says it will appoint an advisor to report on the takeover's merits.

The offer needs the approval of German and New Zealand authorities.