CVT
28/10/2015 14:50
GENERAL
NOT PRICE SENSITIVE
REL: 1450 HRS Comvita Limited
GENERAL: CVT: Comvita announces share buy back from Escrow
On 20 April 2015, we advised the market that New Zealand Honey Producers
Co-Operative Limited ("NZHP") proposed to cease trading and that as a result
the majority of the $2m of Comvita Limited (NZX: CVT) shares held in escrow
for part settlement to members of NZHP would be returned to Comvita. These
shares were originally intended to be released to NZHP annually over a 6 year
period in accordance with a honey supply agreement entered into in July 2014.
Accordingly, we now advise that the Board of Comvita Limited has approved the
repurchase of 547,041 ordinary shares in CVT held by Custodial Services
Limited pursuant to the terms of an Escrow Deed between CVT, Custodial
Services Limited and NZHP, dated 1 July 2014 and with the agreement of NZHP.
The offer follows the shareholders of NZHP voting to approve the winding up
of the affairs of NZHP. Following the repurchase the original settlement
amount paid by CVT to NZHP upon acquiring all the shares in New Zealand Honey
Limited will be reduced by $1,912,521.
The offer will be made in accordance with section 60(1)(b)(ii) of the
Companies Act 1993.
A Disclosure Document has today been sent to all shareholders, advising of
the buy back offer to be made to Custodial Services Limited. A formal buy
back offer will be made not less than 10 working days from today's date,
being the date the Disclosure Document has been sent to all shareholders.
CVT expects the buy back to be completed on 12 November 2015. Upon
acquisition, the Shares will be held as treasury stock and subsequently
transferred into CVT's beekeeper share scheme for both former suppliers of
NZHP and Comvita New Zealand's suppliers with an exclusive long term honey
supply agreement.
Ends
For further information:
Neil Craig, Comvita Chairman, 021 731 509
Scott Coulter, Comvita CEO, 021 386 988
End CA:00272440 For:CVT Type:GENERAL Time:2015-10-28 14:50:52
