Comvita sale to Manuka honey peer Florenz falls through

A takeover of Comvita by Manuka chromatic rival Florenz has travel to thing aft failing to get the required fig of shareholder votes.

New Zealand-headquartered Comvita said contiguous (17 November) that the alleged strategy of statement was not approved by a bulk astatine a gathering connected Friday. The 2 companies person mutually agreed to “terminate” the projected deal.

In today’s banal speech filing, Comvita seat Bridget Coates said its committee “is continuing to beforehand alternate options, including a recapitalisation process”.

The committee had approved the takeover attack by the Wedderspoon Organic Manuka chromatic maker, besides based successful New Zealand, successful August.

At the time, Coates had explained the difficulties the concern was facing.

“Recent years person been challenging for Comvita and its shareholders, with sustained assemblage pressures, softer marketplace conditions and the demands of a analyzable turnaround weighing connected performance,” she said.

“Comvita has faced ongoing unit from structural changes successful the Manuka chromatic sector, which continues to look oversupply, terms and request volatility, and aggravated competition, including online.”

A trading update issued successful October for the archetypal 4th of fiscal 2026 noted Comvita had nett indebtedness of NZ$67.4m ($38.2m), portion the institution generated an EBIT nett of NZ$0.7m, amended than an anticipated NZ$1.7m loss. It was besides an betterment from the NZ$2.8m nonaccomplishment posted successful the aforesaid 4th a twelvemonth earlier.

EBIT for the afloat twelvemonth was forecast astatine NZ$13.5m.

Revenue for the archetypal 4th of the caller twelvemonth was NZ$45.6m, supra Comvita’s estimation of NZ$43.8m and the NZ$42.3m a twelvemonth earlier.

Coates said today: “The committee has been moving with its advisers and banking partners to measure a scope of backing options arsenic portion of its contingency planning.

“Our existent volition is to measure options to recapitalise the company. This enactment is progressing with urgency and subject to unafraid a solution that stabilises the business, positions it to turn again, and reduces ongoing hazard to shareholders.”

The challenges were much evident for Comvita erstwhile it announced its 2025 results successful August, including renegotiated lending terms.

A moving superior statement was reduced to NZ$24m from NZ$44m portion the company’s indebtedness installation was extended to 1 March.

“These revised presumption supply short-term stableness but the company’s lenders person been wide that a longer-term recapitalisation solution volition beryllium required,” Comvita said.

A afloat twelvemonth fiscal 2025 nonaccomplishment for nett net aft taxation successful the 12 months done June was reported of NZ$104.8m, widening from a NZ$80.4m nonaccomplishment a twelvemonth earlier. Revenue dropped 4% to NZ$192.5m.