Comvita announces share scheme for beekeepers

Comvita Limited (NZX:CVT.NZ - News) will enhance its security of supply of Manuka honey through the introduction of a share scheme that will reward its largest and most loyal beekeeper honey suppliers who commit to long term supply agreements with Comvita.

Comvita CEO Brett Hewlett said, "The scheme will provide a way for suppliers of Manuka honey to participate in the value add that Comvita is able to achieve as a business. To enact the scheme, Comvita will purchase on the NZX up to 600,000 of its ordinary shares between now and 29 January 2016. The buying back of already issued shares through the market will not dilute earnings per share for existing Comvita shareholders.

Honey suppliers entering into long term contracts with Comvita will be able to participate in the dividend flow and capital appreciation in the Comvita shares through this new innovative scheme which will be introduced to beekeepers progressively over the next few months."

Comvita therefore proposes to acquire its own equity securities by offers made through NZX’s order matching market as follows:

Offer date: The maximum period during which offers will be made is from and including 3 March 2015 (being three clear business days after the date of this Notice) to 29 January 2016.

Equity securities to be acquired: The equity securities to be acquired are up to 600,000 ordinary shares, being approximately 1.50% of Comvita’s total ordinary shares.