Bellamy’s Organic shareholders vote in favour of takeover by Mengniu
Shareholders of Bellamy’s Organic have voted to hand the baby food manufacturer over to China’s Mengniu company.
INFANT formula manufacturer Bellamy’s Organic should be in Chinese hands within a couple of weeks after shareholders today overwhelmingly voted in favour of the sale to China Mengniu Dairy Company.
More than 82 per cent of shareholders cast their vote in favour of the scheme of arrangement to sell the Tasmanian company to a wholly-owned subsidiary of Mengniu, with a 99.23 per cent approval rate.
Bellamy’s Organic will now apply to the Supreme Court of NSW for orders approving the scheme at a prearranged hearing scheduled for Monday.
The court will almost certainly approve the deal, in which case Bellamy’s will lodge the orders with the Australian Securities and Investments Commission the following day, prompting the delisting from the Australian Securities Exchange.
Bellamy’s chairman John Ho told today’s meeting Mengniu will pay shareholders $12.65 a share under the scheme but they will get another 60 cents a share from the infant formula and baby foods manufacturer as a fully franked special dividend.
Mr Ho said directors unanimously recommended shareholders vote in favour of the scheme and independent report concluded the deal was fair and reasonable.
The scheme was expected to be in place by December 23.
Mengniu is awaiting approval to buy the remaining businesses of Lion Dairy and Drinks.
It already has the major interest in Burra Foods.
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