Vitaco says insider trading probe won’t affect takeover deal

Vitaco says none of its staff are involved in allegations of insider trading in the lead-up to a takeover announcement.

Vitaco chairman Greg Richards (left) and CEO Ryan d’Almeida at the company's ASX listing last year.

Vitaco Holdings has admitted the corporate watchdog is probing suspicious trading activity in the lead-up to the group’s announcement of a $314 million takeover by Shanghai Pharma and Primavera Capital.

The Australian Securities and Investments Commission recently instigated an investigation into suspected insider trading ahead of the August agreement, focusing on parties close to suitor Shanghai Pharma.

“The alleged insider trading does not involve any of Vitaco’s officers or employees,” the Australian vitamins group (VIT) said.

“Vitaco also assures shareholders that it is fully co-operating with ASIC in relation to its investigations and is committed to ensuring an efficient and informed market with respect to trading in its securities.”

The Australian group added it was confident the ASIC probe would not affect the completion of the sale.

The takeover target is best-known locally for its Nutra-Life vitamins and supplements brand and its Aussie Bodies sports nutrition brand. It also owns the popular Healtheries brand in New Zealand.

A shareholder vote on the deal is slated for November 30, with key shareholder Next Capital declaring an intention to vote its 15.3 per cent holding in favour.