The stock fell 7.1%.
Last month Comvita said the third party was doing due diligence to assess the potential acquisition of all or substantially all the shares in Comvita and would update the market in mid-May.
According to Comvita the deal “could have been very positive for the company and NZ Inc in driving the Comvita brand forward into new markets and new sales channels”.
However, in negotiations “we could not bridge the considerable distance between us on price and therefore Comvita directors unanimously agreed to withdraw from the process”.
As a result discussions between Comvita and the third party have now ended with no agreement.
“The due diligence process and further consideration of any proposal to acquire Comvita is now at an end.”
The stock fell 48 cents to $6.29 on the news and is now down 19% so far this year.
Comvita’s flagship manuka honey business can be volatile as weather conditions affect honey production.
Last month it said after-tax operating earnings for the year ending June 30 are expected to be $8 million to $11m, down from an earlier forecast for earnings of more than $17.1m as adverse weather in the second half of the 2018 honey season hurt its honey harvest. -BusinessDesk
