Goodman Fielder shares up 16pc on Singapore buy-in news

Edmonds Custard Powder.The famous Edmonds brand is part of the Goodman Fielder stable. Its shares shot up this morning after news that Wilmar International is trying to build a 10pc stake. Photo / Herald on Sunday

Shares in dual-listed Australasian food company Goodman Fielder shot up by 16 per cent in New Zealand morning trade after Singaporean palm oil concern Wilmar International said it was trying to build a 10 per cent stake.

Goodman Fielder said Wilmar had already built up a 5 per cent stake and had been looking at non-core assets that the company was looking to sell.

By 11.15 am Goodman Fielder shares were trading at $0.78 each, up 11c from Monday's close, and their highest point since last September.

Earlier this month, Sydney-based Goodman Fielder, whose brands include Edmonds baking products and Vogel's bread, reported a 77 per cent slump in its first-half net profit to A$21.5m ($27.7m) from A$93.1m a year earlier.

Revenue fell 3.7 per cent to A$1.29 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) sank 44 per cent to A$117.9m.

"The financial performance of the company is still unacceptable, but we are confident that we are beginning to work our way back towards providing acceptable returns for shareholder," chief executive Chris Delaney said at the time of the release on February 17.

The company said then that it had received unsolicited interest in its Integro food ingredients business and the New Zealand milling operations.

The milling operations, which include Champion flour mills in Christchurch and Mt Maunganui, had goodwill, brand and licences valued at A$49.8m in the 2011 annual report, while the Integro goodwill, brand and licences were worth A$10.7m.

The company's shares hit $0.50 just before the release of its first half result.