SYDNEY, AUSTRALIA: Keybridge Capital Limited has launched a takeover bid for Yowie Group Limited, a company that produces chocolate products with collectible toys inside. Keybridge is offering AUD 3.4 cents cash per share, which values Yowie at about AUD 6.8 million.
The offer price represents a premium of 9.68% to the one month average price of Yowie shares, and a premium of 17.24% to the closing price on the day before the announcement. Keybridge believes that the offer is highly attractive to Yowie shareholders, as it allows them to realise a certain cash value for their shares and avoid the risks and uncertainties facing Yowie.
Keybridge is already the largest shareholder of Yowie, with a 35.673% stake. It is seeking to increase its ownership and influence over the company, which has been struggling with declining sales, rising costs, and competitive pressures. Keybridge intends to have greater input in the strategy of Yowie, and possibly change the composition of the board if it acquires a majority stake.
The offer is subject to a condition that no adverse events occur that could affect Yowie’s business or assets. There is no minimum acceptance condition, and Keybridge has the right to withdraw the offer at any time. Keybridge has also instructed its broker, Ord Minnett, to buy Yowie shares on the market at or below the offer price.
Yowie shareholders have until April 30, 2024 to accept the offer, unless it is extended or withdrawn. Yowie has not yet responded to the offer, and has advised its shareholders to take no action until they receive a formal recommendation from the board.
Victor Group acquires 25% stake in LIT Technology for $2.0 million