Tegel Group Holdings is set to de-list from the NZX after Bounty Fresh Foods crossed the 90 per cent threshold in its $437.8 million takeover bid ensuring it can force hold-out shareholders to sell.

The Philippines poultry company owned 13 per cent of NZX-listed Tegel when announcing the $1.23 per share takeover in April, effectively securing control through a lock-up arrangement with cornerstone shareholder Affinity Equity Partners and its 45 per cent stake.

The offer got the blessing of Tegel's board in June, which accepted the price was fair and Bounty's majority shareholding would create uncertainty for smaller investors.

Bounty now holds 94.5 per cent of Tegel shares, up from 87.2 per cent yesterday, filings to the NZX show. Crossing the 90 per cent threshold means the Filippino firm can trigger mop-up provisions under the Takeovers Code, forcing remaining shareholders to sell.


The shares last traded at $1.12, up from 82 cents before the offer was first announced in April. That's still a discount to the $1.55 price the shares sold at in the 2016 initial public offering.

Bounty wants to use its own sales and distribution channels to sell Tegel products to boost exports to the Philippines and Indonesia, and wants to supplement export growth into Asia.

The offer, which closes tomorrow, is still subject to Overseas Investment Office approval.