Goodman wraps up revamp

The long running drought in Australia has hit livestock and crops hard, pushing up food ingredient costs.

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SYDNEY, Australia (CNN) -- Australia's biggest food group, Goodman Fielder, has completed an A$800 million ($470 million) asset selloff, selling two gelatin plants to Belgium's Tessenderlo on Friday for A$115 million ($67 million).

Goodman Fielder, the subject of a A$2.2 billion hostile takeover bid from spices group Burns Philp, said the sale of its Leiner Davis Gelatin business was above book value and consistent with assumptions in its forecasts.

Leiner Davis has gelatin plants in Davenport in the United States and Santa Fe in Argentina.

Goodman Fielder CEO Tom Park said the sale of its remaining ingredients business was the culmination of a two-year plan to divest non-core assets and concentrate on its retail branded business.

Process began in September 2000

That process began in September 2000 with the sale of Starch Australasia to Penford for A$98 million.

That was followed by the sale of its Germantown specialty ingredients business to Denmark's Danisco for A$197 million in August 2001. Goodman then other parts of Leiner Davis to DGF Stoess for A$190 million in March 2002.

Park said Goodman had changed rapidly from a diversified and partly commoditized food and ingredients business to one focused on high-value retail brands.

It makes butter and bread products under brands such as Uncle Toby's, Meadow Lea and Bluebird.

Shares in Goodman Fielder are 0.57 percent lower at A$1.74 in a weaker overall market on Friday afternoon. The benchmark S&P/ASX200 is off 0.69 percent at 2,943.6.

Price well below Burns Philp offer

Its share price is still well below the A$1.85 offered by smaller rival Burns Philp when it launched its takeover bid on December 12.

Burns Philp, controlled by New Zealand tycoon Graeme Hart, has built up a stake of 16 percent since then, but its highly conditional takeover attempt has been met by an aggressive resistance campaign. (Full story)

The Goodman Fielder board has recommended that shareholders do not accept the offer.

Burns Philp shares are down 1.03 percent to A$0.48 in afternoon trade.

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