Australian spice maker Burns Philp has made a deal to secure its purchase of the country’s largest food company, Goodman Fielder.
“It’s all over, bar the shouting,” Deutsche Bank retail analyst Ray Gin was quoted as saying by Reuters, as Burns Philp took its acceptances for its offer to at least 74%, including stakes from two big investment funds.
Burns Philp agreed to pay an extra two cents a share late on Thursday, raising its total offer to A$1.95bn (US$1.2bn) from $1.93bn.
The increased offer secured board control and a recommendation of the bid from the existing Goodman board, a critical issue for Burns Philp as it woos small investors who own about 20% of the takeover target.
Goodman, which owns Uncle Tobys breads and cereals, Meadow Lea margarine and White Wings cake mix, said Burns Philp will have majority representation on its board from next week.
Burns Philp needs to increase its stake in Goodman to 90% or more in order to elicit compulsory acquisition and access Goodman’s cash flows.
The bid has increased Burns Philp’s net debt to $2.7bn, reported Reuters.