Wilmar: is seeking to buy a 10% stake in Goodman Fielder (GFF.AX), according to the target, with UBS is trying to buy the stake on behalf of Wilmar. Newspapers said Wilmar had offered to buy shares at a 16.5% premium to Goodman last close of A$0.515.
Wilmar already has a stake of < 5% and has been in talks to buy some of Goodman Fielder’s assets, though Goodman said it has not received any proposals to be acquired from Wilmar or any other party.
Goodman is prized for its top-selling Australian brands including Meadow Lea and Praise margarines, White Wings cake mixes, and Helga's and Vogel breads.
Its Integro arm up for sale makes edible oils, breakfast cereals, sauces and cake mixes.
Buying a stake in Goodman, which has a market value of ~A$1b, would increase Wilmar’s exposure to Australia, after it paid A$1.75b for Sucrogen (Australia’s largest sugar miller) in 2010, and A$120m for Proserpine Sugar Co-op in 2011.
Separately, Deutsche says that following the sharp correction in Wilmar’s share price, it believes the recent concerns about its 4Q11 results are overdone, and sees a good opportunity to accumulate the stock. Expects palm processing margins to recover on higher downstream selling prices and improving demand. Reiterates Buy on revised TP of $5.70 (from $5.90).