Shareholders of New Zealand poultry producer Tegel (ASX:TGH) have received a takeover document from Bounty Holdings following a takeover notice last month.
Bounty is offering $1.23 cash per share ,and, under the agreement Tegel is permitted to pay out a dividend up to 41 cents per share prior to closing of the offer.
Tegel has formed an independent sub-committee to respond to the takeover offer but is yet to comment on the merits of the offer.
The offer price represents a 50 per cent premium on the closing price of 82 cents to the company’s last close prior to the bid.
Shares in Tegel (ASX:TGH) closed 1.49 per cent higher to $1.03 yesterday.