Tegel Group Holdings Ltd [ASX:TGH] saw their share price increase by 5% today.
Their shares are currently trading at $1.08, after closing yesterday at $1.025.
Tegel produces and distributes a range of poultry products across New Zealand and selected international markets. They are involved in breeding, hatching, processing, marketing, and the distribution of their products.
Why has Tegel Group’s share price increased?
Tegel’s share price rose following an announcement revealing a takeover offer received on Wednesday, 25 April.
The takeover notice was from Bounty Holdings New Zealand Limited, the second largest poultry integrator in the Philippines.
The offer for each share was for NZ$1.23 in cash. Under the terms of the offer, it also permits Tegel to pay a dividend of up to NZ 41 cents per ordinary share, prior to closing of the takeover.
The offered price for the shares was a premium of 50% on the price of 82 cents, which was the closing price before the date on which Bounty Fresh issued its notice of intention to make the offer.
Tegel has formed a sub-committee but is yet to comment on the merit of the offer.
What can we expect to see from Tegel Group?
The sub-committee advises that shareholders should wait until they receive a copy of the target company statement that they are overseeing before taking any action in respect of the offer.
Tegel will coincide the release of their FY18 full year financial statements to be released along with the company statement sent to shareholders, on Monday, 11 June.
For Money Morning
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