Australia's largest honey company Capilano has announced its support for a $190 million takeover offer from a consortium called Bravo HoldCo.
The Bravo HoldCo entity is owned by private equity fund Wattle Hill, which was co-founded by former Prime Minister Kevin Rudd’s son-in-law Albert Tse, and investment company Roc Partners. Wattle Hill invests in Australian businesses that offer products and services that are in strong demand in China, and is headquartered in Sydney, and has offices in Hong Kong and Beijing.
Capilano is one of the largest honey companies in the world, and already exports its brands to dozens of countries and has a 600-strong supply network of Australian beekeepers.
The Capilano board said an important part of its consideration of the consortium offer was its commitment to ensuring the continuing supply to Australian consumers as well as having strong plans in place to grow exports of premium Australian honey.
The company has now entered into a scheme of arrangement with the consortium and the Capilano board is unanimously recommending the offer to shareholders in the absence of a superior offer, with a vote to be held in November.
Capilano chairman Trevor Morgan said: “The directors have carefully considered the benefits and disadvantages of the Scheme proposal by the consortium and concluded that the cash option under the scheme would provide a certain cash outcome for shareholders for their shares at a premium price.
“Therefore, directors have recommended shareholders vote in favour of the Scheme in the absence of a superior proposal emerging and subject to the independent expert concluding the offer is fair and reasonable and in the best interests of shareholders.”
A scrip alternative will allow Capilano shareholders with the potential to participate in the future of Capilano through an all-scrip 1:1 offer.
