14 Dec 2018

NZ business Methven valued at $120m by Australian company

2:52 pm on 14 December 2018

An Australian company is offering more than 40 percent above New Zealand business Methven's current value.

Prime Minister Jacinda Ardern made the announcement at Methven, a leading manufacturer of showers, valves and tapware.

Prime Minister Jacinda Ardern at Methven. Photo: RNZ/Sarah Robson

Another New Zealand company looks set to be taken over by a foreign company and taken off the stock exchange.

The board of tap and showerware maker, Methven, has been approached by an Australian bathroom and kitchen products company - GWA, which is offering $1.65 for each Methven share.

That's a premium of 43 percent above Methven's closing price yesterday and values the company at about $120 million.

Methven's chair Alison Barrass said the company was not looking for a buyer, but the two firms were a good fit, and the offer was too good to refuse.

"We felt it was an extremely good offer to shareholders and on that basis the board intends to recommend."

However, she said it was not all about price.

"We felt that the two companies are very creatively aligned and that they placed value on what Methven had developed, so their commitment to retain innovation in New Zealand and retain design in New Zealand was an incredibly important part of this transaction," Mrs Barrass said.

Methven's biggest shareholder, the Lindsay Investment Trust with nearly 20 percent, would accept the offer unless there was a better bid.

The offer was being made through a scheme of implementation, which needed a lower level of shareholder approval than the Takeovers Code. Independent reports would be produced in the New Year with a shareholders' meeting likely in April.

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