With due diligence now complete, Goodman Fielder has accepted a $1.34 billion takeover offer from Hong Kong-based investment firm First Pacific and Singapore's Wilmar International.
Goodman Fielder chairman Steve Gregg said the board unanimously recommended that shareholders accept the takeover offer of 67.5 cents a share when they vote on it in November.
"I believe it also represents a positive outcome for our employees, our customers and our consumers. It provides an opportunity to further leverage our strong consumer food brands in Australia and New Zealand to grow our business across the Asian region," he said.
Shareholders holding at least 75 per cent of the company's shares will need to support the bid, which must also be approved by Australia's Foreign Investment Review Board, as well as regulators in New Zealand and China.
Goodman Fielder also said it expected to be hit by a $300-$400 million impairment charge in its accounts for the 2013/14 financial year on the back of tough trading conditions in its Australian and New Zealand baking business.
In May, the Goodman Fielder board agreed to the takeover offer, conditional upon the bidders entering into a scheme of arrangement and the absence of a superior proposal during a period of non-exclusive due diligence.
Trading in Goodman Fielder shares was halted yesterday ahead of news about its takeover.
