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Bega Cheese (ASX:BGA) prepares for acquisition with capital raise

The Market Online Deal Room
ASX:BGA      MCAP $1.277B
23 November 2020 17:30 (AEST)

Bega Cheese (BGA) has entered a double trading halt ahead of an acquisition and capital raise.

The two trading halts mean company shares will be paused for the week until Friday, November 27, or when more details about the buy are released to the market.

During this time, Bega will finalise all details before announcing the purchase.

Bega is an Australian diversified food company with manufacturing factories in NSW, Queensland and Victoria.

Earlier this month, the High Court of Australia dismissed Kraft and Heinz’s application to appeal an earlier ruling on Bega’s peanut butter packaging.

The April ruling meant Bega could keep using its famous yellow lid and label across its peanut butter range.

However, Bega has still endured a challenging year, facing the brutal droughts, the devastating bushfires and now the pandemic. Despite all of this, the company managed to grow in the 2020 financial year and reduced its net debt by $52 million to $236 million.

Revenue for the 2020 financial year increased by 5 per cent to $1.5 billion and operating cash flow increased 37 per cent to $138 million.

On the market, Bega last traded for $5.06 per share on November 20.

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