Bellamys to be bought out by Chinese dairy company for $1.5 billion
By Nikolai Beilharz
Updated about an hour ago
First posted about 3 hours ago
(ABC Rural: Brett Worthington)
Tasmanian-based infant formula company Bellamys has recommended shareholders vote in favour of a proposed $1.5 billion takeover by Chinese company Mengniu.
The potential takeover offers a significant 59 per cent premium to the last closing price for Bellamys shares. Shares closed on September 13 at $8.32, and the offer from Mengniu is $12.65 per share and a $0.60 dividend per share.
The board of Bellamys has unanimously recommended that shareholders vote in favour of the offer.
"It offers a strong platform for distribution and success in China, and a foundation for growth in the organic dairy and food industry in Australia," Mr Cohen said.
Mengniu CEO Lu Minfan said the company had growth ambitions for Bellamys in Australia and the broader Asia-Pacific region, and pointed to investment in the local dairy industry to ensure there was capacity to expand.
The deal is subject to Foreign Investment Review Board approval.
Board member John Murphy said he is hopeful that FIRB approval will be granted.
"At this stage were in the process with FIRB. Were having full engagement and are co-operating in that process. It has a way to run, but were feeling very positive. We dont want to get ahead of that process, well let it play through but at this stage were feeling very positive that it will run a course."
The ABC has contacted the office of Treasurer Josh Frydenberg for comment.