Why Did the Takeover Bid for Comvita Limited Fail and Whats Next

Highlights:

• Comvita Limited (NZX: CVT) shareholders rejected the NZ$0.80-per-share Florenz takeover bid, with early proxy votes indicating the proposal would not meet the required 75% approval threshold.
• At the time of writing, the board has confirmed the deal is “very unlikely to proceed”, shifting its focus toward securing new capital to strengthen the company’s financial position.
• The failed bid now puts pressure on Comvita’s management, as they navigate soft mānuka-honey market conditions, oversupply challenges and the need to reassure investors about the company’s future direction.

Shareholders Reject Major Offer

At the time of writing, Comvita Limited (NZX: CVT) has had its proposed takeover by Florenz voted down by shareholders, leaving the board to pivot quickly toward raising fresh capital. The offer, valued at NZ$0.80 per share, was put to a special meeting after extensive preliminary voting suggested insufficient support.

What Unfolded at the Meeting

The vote took place following a campaign that already indicated trouble for the scheme. Proxy voting had reached more than 80% participation, with early tallies showing only around 54% backing the deal — well short of the 75% threshold needed for approval. The board, chaired by Bridget Coates, acknowledged the result was “very likely not to proceed” while the final count and court approvals are still pending.

Next Step: Capital Raise in Focus

With the takeover off the table, Comvita’s leadership is now considering alternative funding options to shore up its balance sheet. The company faces headwinds in the mānuka-honey sector, including oversupply and price pressure. Investors will be watching closely how the board approaches the capital raise: whether via equity, subordinated debt or other methods — each of which carries implications for shareholder value and future strategy.

What It Means Going Forward

The failed takeover signals a critical juncture for Comvita. Without the certainty of a change in ownership and an injection of fresh capital, the company may face increased pressure from its global operations, supply chain challenges and margins under strain. The board now must persuade shareholders and the market that the business can stabilise and grow without major external help. As the final vote counts emerge and funding decisions crystallise, clarity will be key to rebuilding confidence.

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