Goodman Fielder has refused a $1.27 billion takeover offer from Singapore’s Wilmar International and First Pacific Company, arguing the offer is too low.
Goodman Fielder owns food brands including Praise and MeadowLea and has seen a significant drop in shares recently, The West Australian reports.
Wilmar International already owns a 10 percent stake in Goodman Fielder, and together with First Pacific Company offered Goodman Fielder 65 cents per share.
"The board believes that the current proposal materially undervalues Goodman Fielder and is opportunistic," Goodman Fielder said.
"The board has advised Wilmar and First Pacific accordingly."
Goodman Fielder said it would continue to assess other opportunities and that it has appointed financial and legal advisers.
Goodman Fielder recently announced it was bringing forward its plans to cut 300 jobs in response to a weaker than expected financial performance.
The also sold its New Zealand meats business to Heller’s Limited last month as part of a strategy to “optimise its portfolio by refocusing its marketing and capital expenditure on its core categories and brands where it has profitable, market leading positions.”
The changes are following the issuing of a profit downgrade after profits plummeted due to a lower selling price for baked goods, poor performance from its groceries division and higher farmgate milk prices
Earnings have come up to $27 million lower than its previous full-year profit guidance of around $180 million.