After Coca-Cola Amatil’s share price outpaced the offer made by Coca-Cola European Partners, the prospective buyer has upped the price it will pay – from $12.75 per share to $13.50.
The offer, which is a 5.9 per cent increase, is “best and final” according to CCEP, and is unanimously recommended by Amatil’s related party committee and group managing director.
“The economic outlook for Australia and New Zealand has improved since the announcement of the original CCEP proposal and recent trading validates our strategy and demonstrates our strong recovery,” said Amatil chairman Ilana Atlas.
“The value of Amatil has increased and we are pleased that CCEP has acknowledged this in increasing its proposed cash consideration.”
Amatil released a strong trading update in January, which pushed the business’ shares above its suitor’s initial offer to $13.15 per share, prompting industry analysts to wonder if CCA’s shareholders might vote against CCEP’s offer.
Citigroup’s head of research, Craig Woolford, called the offer “opportunistic” given the improved trading, and said the research firm thought CCEP would likely raise the offer to appease shareholders.
The deal was approved by the Federal Government’s Foreign Investment Review Board at the beginning of this month. Other conditions include an independent expert concluding the takeover terms are fair and reasonable and in the best interests of independent shareholders, Australian court approval and the agreement of Coca-Cola Amatil’s independent Shareholder approval.