Speculation is mounting that the owners of United Petroleum Group could be about to launch a buyout proposal for Retail Food Group after it amassed more shares, with a large line of shares trading in the stock Tuesday.
There were 179 million shares that crossed in the stock, and the understanding is that behind the trade was Avi Silver, the owner of the service station chain United Petroleum.
The interest equates to 7.2 per cent of the company’s shares, which closed at 7.5c, up more than 4 per cent.
If Mr Silver is behind the trade, as is understood to be the case, his interest increases to almost 20 per cent from the last holding of 12.36 per cent.
United Petroleum already owns the business Pie Face, and the play would likely be to sell the RFG brands throughout its service station network.
RFG has brands including Donut King, Gloria Jeans, Michel’s Patisserie, Brumby’s Bakery, Crust Gourmet Pizza and Rack ’Em Bones – and has turned around from being loss making in the past year.
Mr Silver has already increased his position to 12.36 per cent from 11.3 per cent, as disclosed on October 15.
The RFG market value is currently $177m and, with a bid, investors who have been there for the long haul may see it as a good opportunity to bail out of the stock and agree to the terms.
This is even though the price would likely be viewed as highly opportunistic by the company still in the rebuilding phase.
RFG has recovered from most of its past challenges, which include losses and a probe from the Australian Competition and Consumer Commission over its dealings with its franchisees.
For the year to June it generated a $5.8m net profit after generating a loss in the previous corresponding period.
United Petroleum describes itself an Australian petrol retailer and importer.
It was established in 1993 and has about 500 petrol stations in Australia. The company bought Pie Face in 2017 and subsequently rolled it out to many of its service stations.
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