Thursday, September 13, 2012

Fisher & Paykel Turning Chinese: Not at the Current Offer

The bid from 20% holder of Fisher & Paykel Appliances, Haier, [FPA.NZ] looks to be just the start to me.

It is a low-ball bid from an opportunistic bidder in my view and even after all it has been through over the last couple of years still values the company at around $850 million.

The company is Haier and it is large Chinese white ware manufacturer worth around 20 times more than this so the buyout for the company must be put into scale - they can afford more.

Shareholders need to beware that the purchase price is well below the companies intrinsic value and does not place any value on the future prospects of this company and even though I have slagged it in the past, it is worth more. FPA is now running at surplus again and looks set to pay divided once more.

If shareholders recently come to registry want to sell it the fair enough, but if just 10% of sharehoders say no the Haier will have to go spin.

Too many companies have been sold too cheap to overseas buyers and im afraid pakels is another one of those.

Lets not make this another one.


Fisher & Paykel Appliances @ Share Investor

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