Comvita chief executive Scott Coulter says this season's yields are well below expectations, around half of what was originally budgeted. Photo /George Novak.
NZX-listed manuka honey company Comvita has foreshadowed it may be the subject of a takeover, with an unidentified third party undertaking due diligence to assess the business.
The Paengaroa-based company emphasised the possible acquisition remained for now "an incomplete transaction" and there was no certainty that any offer will be
forthcoming.
Comvita's board disclosed the potential takeover along with a downgrade to its earnings forecast for this year, saying it felt obliged to disclose that a third party had been conducting due diligence on the company for several months "to assess the potential acquisition of all or substantially all the shares in Comvita, whether by way of takeover scheme of arrangement, amalgamation or other business combination".
The due diligence is "moving towards a conclusion" and Comvita expects to provide a further update by mid-May, the company said in a statement.
Comvita shares see-sawed in early trading on the NZX following the announcement and were recently up 0.4 per cent to $7.
