Singapore Stock Market News

Wilmar International - GF accepts revised offer

StockFanatic
Publish date: Mon, 19 May 2014, 10:53 AM
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Goodman Fielder (GF) has accepted Wilmar and First Pacific's revised takeover offer, which was raised to A$0.70 per share from A$0.65. The proposal is now subject to due diligence for approximately four weeks and other conditions. We believe the acquisition price is fair and expect the upside to come from the acquirers' ability to expand the market reach of GF's consumer products into Asia as well as cost synergies. We estimate the acquisition could add 1% to Wilmar's FY15 earnings. We maintain Hold and our SOP-based target price.
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