Godfrey Hirst has officially terminated its proposed acquisition of Bremworth after a coalition of shareholders holding 38% of the carpet manufacturer's voting rights vowed to block the transaction.
The decision marks a definitive end to the takeover bid, which had previously cleared regulatory hurdles but faced mounting resistance from a significant bloc of investors.
The deal's failure underscores the power of minority shareholders in New Zealand's corporate landscape, particularly when a substantial portion of the voting base is unified in opposition.
While the New Zealand Commerce Commission had previously granted clearance for the acquisition, removing a major regulatory obstacle, the lack of sufficient shareholder support proved insurmountable for the acquirer.
Bremworth shares are expected to trade independently on the NZX following the announcement, with investors now reassessing the company's standalone valuation.
The collapse of the deal removes the premium associated with the takeover offer, potentially leading to a repricing of the stock as it returns to its fundamental trading range.