The proposed $9 billion takeover of Coca Cola Amatil (CCL) by stablemate, Coca Cola European Partners is dead in the water at current prices.
The European associate of the Atlanta-based Coca Cola Company has offered $12.75 a share.
Seeing CCL’s shares were trading at $13.11 yesterday – a 36 cent premium – the offer price is dead in the water and unless a price of around $13.50 is offered.
The bid received regulatory approval from the Foreign Investment Review Board (FIRB) on Monday, which saw the shares edge up another 0.4%.
CCL announced the approval on Monday, noting the clearance was only one part of the process to finalise the takeover via a scheme of arrangement.
The implementation of the Scheme remains subject to certain other conditions as disclosed to the market on November 4, including approval from the New Zealand Overseas Investment Office, an independent expert concluding (and continuing to conclude) that the Scheme is fair and reasonable and in the best interests of Independent Shareholders, Amatil independent shareholder approval and Australian court approval (The latter is a formality of shareholders approve).
Shareholders in Coca Cola have been agitating for a higher deal price than the currently mooted $12.75 a share offer thanks to a better-than-expected performance by the business over the pandemic.
