Bega Cheese has announced its intention to vote in favour of selling its 15.6 per cent stake in Capilano Honey.
The dairy company, which became the second largest stakeholder in the honey brand in September, revealed plans to sell its stake to Bravo BidCo Pty Ltd, a consortium of Wattle Hill RHC Fund 1 and ROC Capital Pty Limited.
A spokesperson for Capilano told Inside FMCG, “We welcome the news today that Bega, one of Capilano’s largest shareholders, has said it will support the Scheme of arrangement. We believe the offer from the consortium of Australian private equity funds is compelling for shareholders and a positive outcome for industry participants”.
In August the consrtium offered $20.06 per share for Capilano.
Bega Cheese upped 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 per security.
The move prompted rumours Bega would move to take total 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.
Bravo then month sweetened its bid to $21 per share, raising its proposal to $198.6 million.
Capilano shares were up 22 cents, or 1.1 per cent, at $20.86 at 1344 AEDT, while Bega Cheese shares were up one cent, or 0.2 per cent, at $6.02.