NZ Binxi (Oamaru) Ltd will not be upping its $2.20 per share offer for Southland-based meat processor Blue Sky Meats.
In a statement yesterday, the company’s directors said they considered the offer "correct and full value" for Blue Sky, as it was at the top end of the value scale and supported by the target company statement.
"We have fully considered all aspects of the business, the competitive environment, historical and current financial results, overseas market conditions and future capital required to operate the improved business performance," they said.
Shareholders were told last week that $2.50 a share was the price at which Blue Sky directors would recommend the offer and they were advised to wait for the outcome of negotiations.
Blue Sky’s directors had been advised that $2.20 was NZ Binxi’s final price. NZ Binxi already owns 13.5% of the company.
NZ Binxi had received a "good volume" of acceptances for its offer to date but would need to see acceptances "continuing to flow" if the offer was to succeed. The offer closes on February 18.
Directors believed Blue Sky shareholders had all the information they required to make a decision whether to accept the offer and there was no need to wait.
