Just three weeks after lobbing a multi-billion dollar bid for Caltex Australia, British-based EG Group has gone the other way, bidding just $25 million for the health-conscious fast-food network Oliver’s.
EG’s non-binding, conditional 10¢ per share takeover offer for Oliver’s Real Foods that values the company at $25 million, a 3.5 cents premium to its closing share price of 6.5 cents on Tuesday.
Olivers shares jumped 31% to 8.5 cents when trading resumed just after 11 am yesterday after an early halt.
They closed at 9.7 cents, up 49% and close to its 52-week high of $10.5 cents (the 52 week low is 2.1 cents, so the bid should be snapped up).
Olivers has 25 stores in service stations around the country and has had an indifferent financial performance in the past year.
“After careful assessment, the board of Oliver’s had determined that engaging further with EG Group is in the best interests of shareholders,” Oliver’s told the ASX on Wednesday.
The restaurant group only sells organically certified food in its service station outlets, is currently in advanced discussions with EG.
Oliver’s chairman Nick Downer said discussions “are ongoing” but there was no assurance they would result in a formal takeover offer to shareholders.
EG, or Euro Garages, remains in discussions with Caltex about its $3.9 billion cash plus shares offer alongside another takeover contender Canadian convenience giant Alimentation Couche-Tard.
Privately owned EG entered Australia in 2018 buying Woolworths’ petrol stations for $1.7 billion. Oliver’s would make an ideal fit.
