Mengniu Dairy Company makes $1.5 billion bid for Bellamy’s Organic
Chinese dairy company Mengniu Dairy Company has made a $1.5 billion bid for Australian infant formula manufacturer Bellamy’s Organic.
CHINESE dairy company Mengniu Dairy Company Limited has lodged a bid to take over organic infant formula company Bellamy’s Organic.
Under a scheme of arrangement, Mengniu will offer Bellamy’s Organic shareholders $12.65 a share.
On top of that, shareholders will receive a 60 cent special dividend paid by Bellamy’s before the scheme comes into effect.
The total price of $13.25 is a 59 per cent premium on last Friday’s closing price on the Australian Securities Exchange of $8.32 but well below the peak price of $20.73 set in March last year.
The deal values Bellamy’s Organic at about $1.5 billion.
Bellamy’s board is recommending shareholders vote in favour of the deal when it is put to a court-convened meeting of the company in coming months unless a higher bid emerges.
Bellamy’s chairman John Ho said the proposal was an attractive transaction.
“It reflects the strength of the Bellamy’s brand, the dedication of 160 passionate employees and the progress of our turnaround plan,” Mr Ho said.
The deal is subject to Foreign Investment Review Board approval.
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