Cerebos says it won't increase Comvita offer

Cerebos New Zealand said it will not increase its $2.50 a share takeover offer for healthfood and skincare company, Comvita.

Cerebos Gregg's chief executive George Crocker said today the decision followed careful consideration of all the factors investigated by Cerebos before the offer was launched, as well as the independent adviser's report from consultants Grant Samuel.

"The Cerebos offer was priced on our understanding of the risks inherent in the operations of Comvita and the manuka honey industry and the risks and costs associated with achieving continued growth in Asia,'' he said in a statement.

"In our view, these factors do not justify a price anywhere near the valuation range indicated by the Independent adviser's report,'' he said.

The report put Comvita's value in a range of $3.40 to $4.00.

Comvita last traded at $2.75 a share.

-APNZ