In a significant turn of events, the proposed takeover of Comvita by its competitor in the Manuka honey sector, Florenz, has failed to secure the necessary shareholder votes.
On November 17, Comvita, headquartered in New Zealand, announced that the scheme of arrangement did not receive majority approval during a meeting held on the preceding Friday. Consequently, both companies have mutually agreed to terminate the proposed deal.
In its latest stock exchange filing, Comvita chair Bridget Coates stated that the board is actively exploring alternative options, including a recapitalization process.
The board had previously approved the takeover approach from Wedderspoon Organic, a Manuka honey manufacturer also located in New Zealand, back in August.
At that time, Coates highlighted the challenges faced by the business.
“Recent years have been challenging for Comvita and its shareholders, with sustained sector pressures, softer market conditions, and the demands of a complex turnaround weighing on performance,” she noted.
“Comvita has faced ongoing pressure from structural changes in the Manuka honey sector, which continues to face oversupply, price and demand volatility, and intense competition, including online.”
In an October trading update for the first quarter of fiscal 2026, Comvita reported a net debt of NZ$67.4m ($38.2m). Remarkably, the company generated an EBIT profit of NZ$0.7m, an improvement compared to an anticipated NZ$1.7m loss. This is also a significant improvement from the NZ$2.8m loss posted during the same quarter a year earlier.
The EBIT for the entire fiscal year is projected at NZ$13.5m.
In terms of revenue, the first quarter registered NZ$45.6m, surpassing Comvita’s estimate of NZ$43.8m and the NZ$42.3m reported a year prior.
Coates remarked today: “The board has been working with its advisers and banking partners to evaluate a range of funding options as part of its contingency planning.”
“Our current intention is to assess options to recapitalize the company. This work is progressing with urgency and discipline to secure a solution that stabilizes the business, positions it for growth, and reduces ongoing risk to shareholders.”
The struggles became apparent for Comvita when it announced its 2025 results back in August, which included renegotiated lending terms.
The working capital arrangement was scaled down to NZ$24m from NZ$44m, while the company’s debt facility was extended until March 1.
“These revised terms provide short-term stability, but the company’s lenders have been clear that a longer-term recapitalization solution will be required,” Comvita stated.
The net profit after tax for the fiscal year 2025 showed a loss of NZ$104.8m over 12 months ending June, widening from a previous loss of NZ$80.4m the year before. Revenue also dropped 4%, totaling NZ$192.5m.
