Turners and Growers in German takeover bid

File photo / Paul Estcourt

German agricultural trading company BayWa Aktiengesellschaft has launched a takeover bid for Turners and Growers at $1.85 a share.

The company has reached an agreement to buy Guiness Peat Group's controlling shareholding at that price, according to documents filed with the NZX today .

Munich-based BayWa said it had reached a binding agreement to buy GPG's 63.46 per cent stake for $137 million.

As required by New Zealand takeover regulations, the acquisition will be made as part of a takeover offer to acquire up to 100 per cent of Turners and Growers.

APNZ understands BayWa would be comfortable to remain a majority shareholder, with the rest of the company's shares continuing to trade on the NZX.

The offer price represents a 9 per cent premium to Turners and Grower's share price of $1.70 on Wednesday and a 22 per cent premium to the 1-month volume weighted average price before GPG's February 11 announcement that it was selling its portfolio of assets.

The transaction is conditional on approval from the German Federal Cartel Office and the New Zealand Overseas Investment Office.

Turners and Growers' presence on five continents will enable BayWa to expand its offering in the fruit business and to access global growth markets, particularly in Asia, BayWa said.

"This transaction will make BayWa one of the world's leading suppliers of fruit, as Turners and Growers is represented in all key markets on all continents," BayWa chief executive Klaus Josef Lutz said in a statement. "The door to Asia, the highest growth market for fruit, is now wide open for BayWa' fruit trading business," he said.

BayWa said it intended to run Turners and Growers "substantially as a standalone entity and support the current management in their plans to grow the business."

"One of BayWa's key focuses will be increasing returns to apple growers through improved operational efficiencies, supply chain management and marketing processes."