Comvita rewards loyal beekeepers with bonus share issue   21 Jun 2012

Comvita rewards loyal beekeepers with bonus share issue after takeover thwarted

By Jonathan Underhill

June 21 (BusinessDesk) - Comvita, which makes products based on the virtues of honey, will reward shareholding beekeepers with a bonus issue after buying the stock on market.

The company said it bought 177,354 ordinary shares at an average price of $3.24 and “has now completed the issue of these shares to its most loyal beekeeper suppliers.” That would be a total cost of $574,627.

“These shares will be used as part of a value-add bonus scheme to reward our most loyal beekeeper suppliers who have contributed to the continued growth of Comvita,” said chairman Neil Craig. “We hope beekeepers will retain their shares for the longer term.”

Craig led last year’s defence against a hostile takeover offer from multinational Cerebos Greggs. The company went on to post record earnings as sales rose.

The company ended up paying a higher average price than the $2.50 a share offered by Cerebos. An in dependent valuation put the shares at $3.40 to $4 apiece.

The shares fell 2.7 percent to $3.30 on the NZX today, having surged 41 percent this year.

(BusinessDesk)

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