Dawn Meats sweetens bid for Alliance Group

Core Viewpoint - Dawn Meats has increased its proposed majority share bid for New Zealand's Alliance Group, contingent on the cooperative meeting its profit and debt targets, with an additional payment of NZ$20-25 million expected due to better-than-forecast performance [1][2]. Group 1: Bid Details - Dawn Meats is seeking a 65% stake in Alliance Group for NZ$250 million (approximately $143.4 million) [1]. - The additional payment of NZ$20-25 million will be distributed as a dividend to cooperative members after the transaction is completed [2]. Group 2: Financial Performance - Alliance Group's profit estimate for the year is between NZ$18-24 million, exceeding expectations, while net debt is lower than anticipated [2]. - The cooperative reported revenue of NZ$1.8 billion in 2024 but incurred a loss after tax of NZ$95.8 million [6]. Group 3: Shareholder Vote and Recommendations - A final vote on the bid is expected on Monday or Tuesday of the following week [3]. - Alliance Group's chair has urged shareholders to accept the offer, stating that the board unanimously recommends the proposal [4]. - An independent adviser has indicated that Dawn Meats' offer is the best and only option to meet the cooperative's strategic and financial needs [5]. Group 4: Potential Consequences - If shareholders reject the bid, Alliance Group may face limited options, including asset sales, site closures, cost reductions, or potential insolvency [5].