What Happened to the Goodman Fielder Share Price?
Shares of Goodman Fielder Ltd [ASX:GFF] gained 3.8% Monday, closing at its highest level this year.
Why Did this Happen to the GFF Share Price?
The company’s board voted to accept a takeover bid from Singapore’s Wilmar International Ltd and Hong Kong’s First Pacific Co. The takeover bid is at 70 cents, an increase over the 65 cent bid the Goodman Fielder board had previously rejected.
The new bid values the company at $1.37 billion.
What now for Goodman Fielder?
The Wilmar and First Pacific bid appears to be a classic case of investment opportunism. The Goodman Fielder share price took a hammering in early April when the company revealed that earnings would be up to 15% lower than analysts’ expectations.
This news saw the share price sink to a low of 47.5 cents per share, the lowest share price for the company’s shares since mid-2012.
There doesn’t seem to be much chance of the takeover not going through. Two big funds management groups have already indicated that they plan to accept the offer. And with the share price down more than 74% since the top in 2008, it’s unlikely that investors will ignore this opportunity to get out now before things potentially get worse for the share price.
Cheers,
Kris+
