Two Asia-focused investment funds seeking a joint takeover of Australia’s Capilano Honey have reportedly increased their share offer.
China-centric Wattle Hill RHC and Asia-Pacific private-equity specialist Roc Partners are believed to have raised their bid to AUD21 a share from AUD20.06, according to The Australian Financial Review.
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In the wake of the increased offer, shares of Capilano have been placed on a trading halt on the Australian Securities Exchange today (2 November).
Back in August, Capilano’s board of directors “unanimously recommended” the bid from the Wattle Hill-Roc consortium based on the AUD20.06 offer, which would have valued the company at AUD189.7m (then US$137.7m). That offer also got the support of foundation shareholder Capilano Beekeepers, the AFR said today.
But in October, Australia’s Bega Cheese raised its stake in Capilano to 11.2% from 5.76%, and now, AFR reports it has since upped its holding to 15.6%. The revised offer will suit Bega which has been buying shares at prices as low as AUD15.54 through adviser Kidder Williams, the Review said.
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Billionaire Kerry Stokes and son Ryan reportedly own 23.12% of Capilano.
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By GlobalDataThe AFR said a so-called scheme meeting for the Wattle Hill-Roc offer is to be held sometime in November after the honey maker’s shareholders have made an assessment.
