- Youfoodz (YFZ) could see 100 per cent of its share capital devoured by meal kit supplier HelloFresh for $125.3 million
- The deal represents a per-share premium of 82 per cent to the Youfoodz closing share price of $0.51 on Monday, July 12
- At this price, shareholders who bought into Youfoodz’ $70 million initial public offering in December will make a loss
- The Youfoodz board is unanimously in favour of the takeover offer
- The scheme is subject to customary conditions including approvals by Youfoodz shareholders and the Federal Court of Australia
- Youfoodz last traded at 51 cents on July 12
Youfoodz (YFZ) is set to see 100 per cent of its share capital devoured by meal kit supplier HelloFresh for $125.3 million.
Youfoodz has entered into a binding scheme implementation deed which will see HelloFresh, the largest meal kit supplier in Australia, acquire all share capital in Youfoods for 93 cents per share in cash.
The price values the fully diluted equity of Youfoodz at approximately $125.3 million.
The share price represents a premium of 82 per cent to the Youfoodz closing share price of $0.51 on Monday, July 12 and a 109 per cent premium to the one-month volume-weighted average price of Youfoodz shares of $0.44.
As a result of this, shareholders who bought into Youfoodz’ $70 million initial public offering in December, which saw shares issued at $1.50 each, will mark down a loss.
The Youfoodz board is unanimously in favour of the takeover offer, with board members saying they intend to vote all their shares in favour of the scheme.
Youfoodz says HelloFresh represents a strong strategic partner for Youfoodz, and says the transaction will combine YouFoodz’s strength in developing ready-made meals with HelloFresh’s expertise in supply chain management, technology and direct-to-consumer marketing.
The Scheme is subject to customary conditions including Youfoodz shareholder approval, Federal Court of Australia approval and no material adverse change or prescribed occurrences.
Youfoodz last traded at 51 cents on July 12.