Bid for NZ honey producer Manuka valued at $300m

Two Chinese companies have bid for New Zealand honey producer Manuka Health, pricing the company at about $300 million, a source with direct knowledge of the sale said on Monday.

The source declined to name the companies. But the Australian Financial Review newspaper reported Beijing-based private equity investor CDH Investments was a bidder.

CDH did not immediately respond to a request for comment, nor did a spokeswoman for Auckland-based Manuka Health.

A spokesman for its owner, Australian private equity firm Pacific Equity Partners, had no immediate comment.

CDH last month sealed a $1.4 billion takeover of Australian liver-cancer treatment maker Sirtex Medical. Chinese investors have poured more than A$5.5 billion ($4 billion) into the Australian health sector since 2015, accountancy firm KPMG said.

These companies bought into Australian winemakers, acquired farms and bid on dairy makers.

China Resources Ng Fung holds the biggest single stake in Manuka Health rival Comvita.

Made from the nectar of the manuka plant, which is native to New Zealand and Australia, manuka honey is prized for its antibacterial properties as much as the taste and can fetch as much as $86.30 per kilogram, government figures show.

By value, New Zealand exports -- one-quarter of which are sent to China -- hit a record NZ$329 million in the 2016 to 2017 period, though rapid growth stalled as poor weather hurt pollination.

In addition to the honey, Manuka Health sells honey-based skincare products as well as vitamin capsules. Second round bids are due in six weeks, the source said.