As expected Patties Foods, owners of leading food brands such as Four’n Twenty pies and Nanna’s frozen deserts, has backed a $230 million takeover bid from a private equity firm.
Patties said yesterday it had entered into an agreement with Pacific Equity Partners which wants to buy all of Patties at $1.65 a share.
Patties told the ASX yesterday that directors unanimously recommended shareholders vote in favour of the sale.
"Whilst the board remains confident in management’s plans for growth and innovation in the core brands and the business is experiencing strong momentum, the scheme represents an attractive value for shareholders," Patties chairman Mark Smith said.
Patties grew from a small cake shop opened in Lakes Entrance in Eastern Victoria in 1966 by Peter and Annie Rijs, whose family still owns 36.6% of the company. The Rijs family have indicated they intend to vote in favour of the deal.
Patties shares closed at $1.33 last Friday before jumping towards the offer price on Monday as news of private equity interest broke in the media and then in an ASX announcement. The shares closed at$1.685 yesterday as punters speculated on another bid.
