Bega Sells Out Of Capilano Battle

By Glenn Dyer | More Articles by Glenn Dyer

Bega Cheese has abandoned ambitions to take control of Capilano and will sell its stake to a Chinese-focused consortium bidding for the honey maker.

Bega, which became the second largest stakeholder in the honey brand in September, said in a statement it will sell its 15.6% holding to the Bravo BidCo Pty Ltd consortium.

A consortium of Wattle Hill RHC Fund and ROC Capital Pty Ltd – Bravo BidCo – in August offered $20.06 per share for Capilano.

That bid has the support of Kerry Stokes investment company which is the largest shareholder with a 20.6% stake.

Bega Cheese lifted its stake in the ASX-listed honey company a month later, paying $5.38 million for 255,291 shares at an average of $21.08 a share.

The move prompted market talk that Bega would bid for control of Capilano, but the beekeeper-owners of the company threw their support behind the private equity takeover.

Capilano Beekeepers Limited – the holder of the controlling foundation share in the listed company – said it would transfer its stake into the new company for a consideration of $1 and representation on the new company’s board if the takeover from Bravo went ahead.

Capilano chair, Trevor Morgan said in a statement yesterday “We are very pleased to be able to announce this increase to the Cash Consideration, which represents an even better deal for Capilano shareholders.”

“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.”

Bravo then month sweetened its bid to $21 a share, raising the value of its offer to a sweet $198.6 million.
Capilano shares were up 1.1%, at $20.85, while Bega Cheese shares ended at $5.99, down 0.3%.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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