Keybridge makes $20m Yowie takeover bid
Investment firm Keybridge Capital has launched a $A20 million takeover bid for struggling chocolate company Yowie.
Keybridge, already holds a six per cent stake in Yowie, said it will offer 9.2 cents per share for Yowie, a 31 per cent premium to Yowie’s share price before Wednesday’s open.
Last month the confectionery company reported a first-half loss of $US1.24 million ($A1.75 million).
“Keybridge notes that Yowie has consistently failed to structure or conduct its business operations in a profitable manner and that Yowie has incurred significant losses in the ordinary course of its business,” it said.
“Given those matters, Keybridge wishes to increase its stake in Yowie to a level where it is able to exert material influence.”
Yowie chairman Louis Carroll said last month that his company’s performance in the six months to December 31 had fallen well short of shareholder expectations, with rival Ferrero having launched a new Kinder product in the US.
However he said he expected profitable trading by the end of the current financial year.