Join our daily newsletter At The Bell to receive exclusive market insights
- Bellamy’s open to $1.5B takeover by China Mengniu Dairy Company
- Mengniu will acquire all shares in the company
- Shareholders will receive $13.25 for each share they hold
- Following the announcement Bellamy’s share price jumped nearly 54 per cent, to sit at $12.80 apiece
Bellamy’s Organic is looking to sell the company to one of China’s leading dairy manufacturers for roughly $1.5 billion.
Upon announcing the takeover plans to the market this morning, shares in the company have jumped nearly 54 per cent, adding $4.48 in value to each share.
Shares in Bellamy’s are currently worth $12.80 apiece, as of AEST 10:52 am.
China Mengniu Dairy Company, who is listed on the Hong Kong stock exchange, will make the purchase of Bellamy’s acquiring all shares in the company.
Assuming the buyout goes ahead, Bellamy’s share holders will receive $13.25 per share they hold. This will be broken up by a $12.65 payment from Mengniu Dairy and a $0.60 fully franked dividend from Bellamy’s.
“The Bellamy’s board has unanimously concluded that the scheme is in the best interests of the shareholders,” Bellamy’s Deputy Chair John Murphy said.
Selling the company to Mengniu Dairy is seen as a strategic move by Bellamy’s CEO Andrew Cohen, giving Bellamy’s better access to the growing Chinese market.
Mengniu Dairy “offers a strong platform for distribution and success in China, and a foundation for growth in the organic dairy and food industry in Australia,” Andrew said.
When discussing the purchase of Bellamy’s, CEO of Mengniu Jeffrey Minfang Lu said the organic dairy producers brand, product and operations are key factors of the buy.
“This leading organic brand position and Bellamy’s local operation and supply-chain are critical to Mengniu,” Jeffrey said.
He added, “our sales growth ambitions for Bellamy’s in Australia, and the broader Asia Pacific region, will see investment in the local dairy industry to ensure the required capacity is in place the achieve these plans.”
