Bega to vote in favour of Capilano takeover

Bega to vote in favour of Capilano takeover

Ahead of the imminent takeover of Capilano by a consortium of private investors, Bega Cheese has announced its support for the deal.

Bega, the second largest shareholder in Capilano, plans to vote in favour of selling its 15.6 per cent stake in the honey producer to the China-focused consortium.

The consortium of Wattle Hill and ROC Capital, called Bravo BidCo for the purposes of the takeover, recently increased its bid for the honey producer to $21 per share from $20.06.

Worth $198.6 million, the deal will see 100 per cent of Capilano shares transferred to the consortium.

Earlier this month, Capilano chairman Trevor Morgan said the new deal is an even better result for shareholders.

"We are very pleased to be able to announce this increase to the Cash Consideration, which represents an even better deal for Capilano shareholders," says Morgan.

"The Capilano Directors unanimously recommend that Capilano Shareholders vote in favour of the Scheme, in the absence of a Superior Proposal, and subject to the Independent Expert continuing to conclude that the Scheme is fair and reasonable, and in the best interests of, the Capilano Shareholders."

BEHIND THE DEAL

Over the last few months the transaction has been the subject of a variety of bewildering plays from shareholders.

After announcing the proposed takeover, controlling stakeholder Kerry Stokes increased his stake in the business to 21.7 per cent of voting power.

In the background was an ongoing development regarding allegations made against Capilano that it was selling fake honey.

Capilano slammed media reports from the Sydney Morning Herald and the ABC that it may be unwittingly selling fake honey after nuclear magnetic resonance (NMR) testing revealed that Allowrie's Mixed Blossom Honey was 'adulterated' in a majority of samples.

However, as reported by The Australian, the SMH and the ABC failed to disclose a crucial fact; the law firm that commissioned the report on the fake honey was acting for Roc Partners and Wattle Hill. Once this conflict was revealed the law firm behind the report, King & Wood Mallesons, removed itself from acting for the bidders.

Shares in Bega are down 0.75 per cent to $5.96 and shares in Capilano are up 1.07 per cent to $20.86 per share at 10.54 am AEST.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Cyber security consultancy CSO Group to merge with AI enabler xAmplify

Cyber security consultancy CSO Group to merge with AI enabler xAmplify

Sydney-based cyber security consultancy CSO Group is set to join fo...

Julian Assange will be freed after striking plea deal with US authorities

Julian Assange will be freed after striking plea deal with US authorities

Julian Assange has reached a deal with the United States Department...

Cash transporter Armaguard receives $50m lifeline to stay afloat

Cash transporter Armaguard receives $50m lifeline to stay afloat

As cash processing, storage and transport company Armaguard struggl...

Cettire loses $411m in value as shares plummet 48pc

Cettire loses $411m in value as shares plummet 48pc

All of the extraordinary share price gains made by Melbourne-based ...