{"id":97382,"date":"2025-10-23T22:26:07","date_gmt":"2025-10-23T22:26:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/97382\/"},"modified":"2025-10-23T22:26:07","modified_gmt":"2025-10-23T22:26:07","slug":"the-rise-and-fall-of-comvita-dgl-falls-foul-of-the-asx-and-a-failed-bid-for-metroglass-stock-takes","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/97382\/","title":{"rendered":"The rise and fall of Comvita, DGL falls foul of the ASX and a failed bid for Metroglass \u2013 Stock Takes"},"content":{"rendered":"
He faces stiff opposition.<\/p>\n
The scheme is subject to various approvals but has the support of the board.<\/p>\n
China Resources Enterprise and Li Wang, Comvita\u2019s two largest shareholders who together own 18.3%, support the transaction.<\/p>\n
And Comvita \u2013 a global market leader in the m\u0101nuka honey trade \u2013 said certain institutional shareholders had advised that they support the Florenz offer.<\/p>\n
At the end of its last financial year, Comvita reached an agreement with its banking syndicate on revised covenants.<\/p>\n
In its latest annual report, Comvita said it was clear from discussions with advisers and banks that a longer-term recapitalisation solution was required.<\/p>\n
Florenz is a unit of Christchurch-based Masthead \u2013 the investment vehicle of the Stewart family. Mark Stewart\u2019s wealth was estimated at $1 billion in the 2025 NBR Rich List.<\/p>\n
Florenz\u2019s portfolio includes Wedderspoon Organic \u2013 North America\u2019s leading seller of m\u0101nuka honey products.<\/p>\n
A scheme of arrangement meeting for the Florenz offer is scheduled for November 14.<\/p>\n
After some prompting from Comvita, Bougen made clear his intentions for the company he founded.<\/p>\n
\u201cI am leading a group of shareholders and other interested parties who are working together with the common purpose of opposing the proposed takeover of Comvita by scheme of arrangement and to formulate and propose an alternative funding proposal that we believe will be superior to the Florenz bid,\u201d he said.<\/p>\n
\u201cAt this stage, we are in the process of formalising our syndicate and attempting to confirm commitments from interested parties that would enable us to put a credible proposal to Comvita.\u201d<\/p>\n
The company\u2019s annual report said 2025 was a \u201cdeeply challenging\u201d year.<\/p>\n
Structural pressure in the m\u0101nuka honey sector intensified, operating conditions worsened in several export markets and the company faced the compounded impacts of trading underperformance, financial constraints and legacy issues.<\/p>\n
\u201cOversupply, economic uncertainty and demand fluctuations are reshaping the industry, with the premium positioning under attack,\u201d CEO Karl Gradon said.<\/p>\n
\u201cGlobal category growth remains modest at 1 to 3% per annum,\u201d Gradon said.<\/p>\n
\u201cIt has largely been survival mode for many players,\u201d he said.<\/p>\n
Comvita, founded in 1974, employs more than 400 people globally.<\/p>\n
It has operations in Australia, China, North America, Southeast Asia, Europe and New Zealand.<\/p>\n
Canaries in the mine?<\/p>\n
The recent collapses of US car parts maker First Brands and auto dealership Tricolor may be a warning of much bigger financial problems to come and the Bank of England plans a more detailed probe, the bank\u2019s governor Andrew Bailey said on Tuesday.<\/p>\n
News agency Reuters reported Bailey as telling lawmakers that there were parallels with the early stages of the Global Financial Crisis and that the central bank planned to run a \u201cstress test\u201d with the private equity and credit industry.<\/p>\n
\u201cAre these cases idiosyncratic or are they what are called \u2018the canary in the coal mine\u2019? In other words, are they telling us something more fundamental … ? I think that is still a very open question,\u201d Bailey told the House of Lords\u2019 financial services regulation committee.<\/p>\n
DGL suspended<\/p>\n
Former NZX-listed chemicals handling specialist DGL remains suspended on the ASX, first for being late in filing its annual report and then over issues with a tagged auditor\u2019s report.<\/p>\n
The stock was suspended on October 1. When it filed its report, the stock remained suspended because of a \u201cdisclaimer of opinion\u201d tag on its auditor\u2019s report over the treatment of inventory.<\/p>\n
The auditor\u2019s report said: \u201cOur risk assessment substantially changed throughout the audit process as a result of failures identified in the system of internal control and oversight processes, which we have concluded are pervasive to the financial report of the group.\u201d<\/p>\n
DGL said it had completed 30 business and asset acquisitions in the last five years and was undertaking a \u201csignificant business transformation programme\u201d.<\/p>\n
The DGL board had confidence in the financial information presented in the annual report and in the company\u2019s underlying performance, it said.<\/p>\n
DGL delisted from the NZX in June 2022 after a public furore over inflammatory comments made by founder and CEO Simon Henry about My Food Bag founder Nadia Lim.<\/p>\n
Infratil\u2019s Contact move<\/p>\n
Infratil\u2019s move to buy TECT Holdings\u2019 (TECT is formerly the Tauranga Energy Consumer Trust) 4.92% shareholding in Contact Energy is a solid move, investment firm Forsyth Barr says.<\/p>\n
The purchase price of $437.7m, or $8.95 per share, will be funded through a combination of $218.8m in existing debt capacity and the issuance of $218.8m of new Infratil shares to TECT at $12.43 per share.<\/p>\n
Infratil had earlier completed the sale of its 51% stake in Manawa Energy to Contact in July 2025, in return for approximately $186m in cash and its shareholding in Contact.<\/p>\n
\u201cWe think this is a solid move for Infratil and is consistent with its strategy for cashflow generators to be 30%\u201350% of its portfolio,\u201c Forsyth Barr said.<\/p>\n
\u201cWhile minority stakes in listed vehicles aren\u2019t a typical long-term Infratil [IFT] asset, we believe Contact ticks a lot of boxes for IFT currently.<\/p>\n
\u201cIt is a cash-generative, New Zealand-based asset nearing a meaningful scale in the portfolio and has valuation upside.<\/p>\n
\u201cThis transaction is also the first small step by IFT to ensure its portfolio remains balanced following [data centre] CDC\u2019s strong performance,\u201d it said.<\/p>\n
Metroglass bid fails<\/p>\n
Viridian\u2019s bid for Metro Performance Glass has failed because of the Commerce Commission\u2019s concerns about effects on competition.<\/p>\n
The commission said it had unresolved issues on the transaction\u2019s potential effect on competition as both are involved in the processing and installation of glass across New Zealand, with plants in both Auckland and Christchurch.<\/p>\n
However, the commission had not reached a final decision on these issues at the time of Viridian\u2019s withdrawal.<\/p>\n
\u201cWith the completion of the recapitalisation, debt forgiveness and new three-year banking package and Viridian\u2019s application now out of the way, we can focus on the continued turnaround and dedicate all our focus to the business performance and growing shareholder value,\u201d Metroglass said.<\/p>\n