Yowie calls Keybridge offer “highly opportunistic”
Yowie chairman Louis Carroll has advised shareholders to take no action, following an offer from investment firm Keybridge Capital on Wednesday.
The chairman of the struggling confectionery company said in a statement on Wednesday that the Board will make a formal recommendation on the takeover bid.
“Should a bid be made on the terms outlined by Keybridge, the Board would recommend shareholders reject the bid,” a statement from the chairman read.
“The Board considers the unsolicited approach by KBC to be highly opportunistic. The advised bid price of 9.2 cents fundamentally undervalues Yowie’s business, brand, intellectual property and significant cash balance.”
Keybridge Capital currently has a 6 per cent stake in Yowie. On Wednesday it offered 9.2 cents per share for Yowie, a 31 per cent premium to the Aussie chocolate company’s share price before Wednesday’s open.
Yowie chairman Louis Carroll said in February that his company’s performance in the last six months to December 31 fell short of shareholder expectations. But despite poor sales, Carroll is still optimistic about a Yowie profit by the end of 2019.