Do NOT Accept: Fisher & Paykel V Haier War of Words

Fisher and Paykel takeover row intensifies as Directors urge shareholders not to accept Haier’s takeover bid, as the war of words continues.

Keith Turner Chairman of Fisher & Paykel Appliances, with the backing of Independent Directors, has written to company shareholders once again urging them not to take up Haier offer of $1.20 per share for the appliance giant.

“We understand that Haier has again written to shareholders – asserting that you should accept Haier’s offer for your shares in Fisher & Paykel Appliances at $1.20 per share,” Turner wrote in a letter to shareholders dated 12 October. 

“Your Independent Directors continue to unanimously recommend that you do not accept Haier’s offer as we believe that it does not adequately reflect the value of Fisher & Paykel Appliances.”

Last week, the Chinese owned Haier group upped the ante on its recently announced bid for NZ based Fisher and Paykel Appliances, including its Australian entity, announcing it has received approval from US anti-trust regulators.

Liang Haishan, Chairman of Haier NZ and group President, also last week dismissed F&P’s Independent Adviser’s recent report, which placed the company’s share valuation at $1.28 – $1.57 per share, as”overly optimistic”.

However, Haier’s one trump card is that it has F&P’s largest shareholder, Allan Gray Australia, already in agreement to the takeover bid.

Haier also already owns a 20% share in the appliance giant.

But despite all this, Fisher and Paykel’s Independent Directors are not budging.

“Our recommendation remains unchanged,” Chairman Turner told its shareholders.

“Fisher & Paykel Appliances is in a strong financial position and, as we said previously, we have confidence in the strategic direction of the company.” 

However, he added: “shareholders will need to consider Haier’s offer in the context of their own circumstances, and should consult their own professional adviser.”

Fisher & Paykel’s company shares fell 0.51% on ASX today to $ 0.975.