Oliver’s Real Food tempts Caltex suitor EG

Britain’s EG has lobbing a $27m takeover bid for the struggling Oliver's Real Food just months after it pitched for Caltex.

Britain’s EG is attempting to stitch together an empire spanning service stations and food chains in Australia after lobbing a $27m takeover bid for the struggling Oliver's Real Food just months after it pitched a $3.9bn bid for Caltex.

Last year EG paid $1.7bn for Woolworths’ network of 540 petrol ­stations and is prepared to invest billions in the service station market as well as adjoining sectors such as food retail.

While the Caltex bid is still in limbo with rival bidders, EG announced on Wednesday an all-cash offer for Oliver’s priced at 10c a share, against Oliver’s last trading price of 6.5c.

Shares in Oliver’s shot up almost 50 per cent on the takeover bid and closed at 9.7c.

Oliver’s, which opened a network of healthy choice restaurants at petrol stations and highway rest areas, floated on the ASX three years ago with its shares offered at 20c each. They soon raced above 30c but a series of profit warnings and corporate intrigues saw them collapse to under 10c.

Oliver’s said it would discuss the offer. “After careful assessment, the board of Oliver’s has determined that engaging further with EG Group is in the best interests of shareholders. Oliver’s is currently in advanced discussions,” the company said in an ASX statement.

The proposal is subject to conditions including mutually agreeable transaction documents, court and shareholder approvals, regulatory approvals, support of the Oliver’s board, a call option over 19.9 per cent of the company at the proposal value and other deal protection mechanisms.

Oliver’s chairman Nick Downer said the proposal might not result in a formal offer.

“Oliver’s shareholders should take no action in relation to the proposal. Oliver’s will update the market if there is any material developments in relation to the proposal.”

EG co-founder and co-CEO Zuber Issa said the company was committed to healthy and innovative food ideas for the sector.

“In Oliver’s we see a concept that meets a global trend towards healthy and sustainable eating,” he said.

EG Australia CEO Mike McMenamin said: “ This acquisition presents a great opportunity for us to enter the Australian restaurant market.”