Shares in Youfoodz soared yesterday after the company revealed a friendly takeover offer from German rival, Hellofresh.
The shares soared more than 77% to 90.5 cents at the close and under the 93 cents a share offer.
The shares hit a high of 92 cents in a day of exuberant dealings, but unfortunately that was nowhere near the $1.50 a share issue price in last December’s float.
The company’s shares never topped the $1.50 level – in fact never went near it. The mop up bid from Hellofresh was also well short of the $1.16 all-time peak hit just after the float in December.
The 93 cents a share agreed price was however a significant premium to the last sale price of 51 cents on Monday.
The float saw the company valued at $202 million, the 51 cents close on Monday was equal to just over $68 million and the 91 cents a share offer price values the company at $125 million.
For those shareholders who took up shares in the float and didn’t sell, the proposed offer price represents a loss of just over a third in the eight months since the float.
The bid has been recommended by Youfoodz directors and subject to there being no higher offer, the company’s biggest shareholder, RGT Capital, will accept in respect of its 57% stake.
In a statement announcing the proposed takeover, YouFoodz said that “As a world-leading direct-to-consumer food solutions group, HelloFresh represents a strong strategic partner for Youfoodz.”
“The transaction combines Youfoodz strength in developing and manufacturing delicious ready-made meals with HelloFresh’s expertise in supply chain management, technology and direct-to-consumer marketing. Both companies are unified in their purpose to provide Australians with delicious high quality and affordable fresh meals.”
The reality is that the German company is offering a price that Youfoodz shareholders would have been hard pressed to see ever again. That’s why it’s an agreed bid, especially with the biggest shareholder taking the money and saying yes.
