- Aussie chocolate company Yowie is to be completely bought out by investment management company Aurora Funds
- Yowie shareholders will be issued Aurora trust funds at nine cents per YOW share, a premium of 16.8 per cent
- Aurora made the decision after recognising a ‘deteriorating’ sales performance by Yowie.
Unlisted company Aurora Funds Management has announced a bid today to buy out the full interest of Aussie chocolate company, Yowie.
Aurora intends to make an all scrip takeover to be fully paid in units of Aurora trust funds. Fund value is placed at nine cents per Yowie share.
The current allocated bid represents a 16.8 per cent premium to Yowie’s closing price last week of 7.7 cents per share.
Accepting Yowie shareholders have the ability to redeem their Aurora shares off-market for cash, pending Aurora constitution, if they choose not to hold.
Yowie’s latest quarterly report from earlier this year outlined a ‘deteriorating’ sales performance with a net cash outflow of US$1.787 million.
Current Yowie Chairman Louis Carroll was appointed the role in September 2017. Closing customer receipts in 2017 showed US$5.019 million, compared to US$2.369 million in March this year, representing a 52.8 per cent decrease.
Cash reserves in 2017 were also at $25.163 million compared to $16.982 million as of today, representing a massive decline of A$630,000 per month.
Aurora moved to takeover the company after assessing the decline in performance and ongoing low-faith in board direction.
Aurora’s bid of issued shares will open mid July and close mid August this year.
Management of Aurora believe the bid price will provide the company with potential for future capital growth, allowing for stronger portfolio performance.
Shares in YOW did bump a positive 6.49 per cent this morning however. Shares are currently valued at 8.2 cents a piece in a $16.76 million market cap.