The Aussie group provided an after-market update on its proposed acquisition by China Mengniu Dairy Company Ltd (Mengniu) yesterday.
Why are Bellamy’s shares set to leave the ASX?
The Supreme Court of New South Wales has approved the proposed Mengniu acquisition of the group.
Bellamy’s expects to lodge a copy of the Court orders with the Australian Securities and Investments Commission (ASIC) today.
Bellamy’s shareholders are set to receive $13.25 cash per share for each share held on Tuesday 17 December.
That comprises $12.65 per Bellamy’s share paid by Mengniu and a fully franked special dividend of $0.60 paid by Bellamy’s.
What’s the background behind the deal?
The group entered into a scheme of implementation deed under which Mengniu would acquire 100% of Bellamy’s shares.
Mengniu’s offer was also a significant 59% premium on its $8.32 per share valuation prior to 16 September.
Bellamy’s shares closed at $13.23 per share in yesterday’s trade and should remain at that mark given the $13.25 payout from the deal.
What about the other Aussie dairy companies?
Jayne Hrdlicka will exit the role and former CEO Geoffrey Babidge will take the reins.
While Ms. Hrdlicka said the demands of the role were behind the decision, investors headed for the exit in Monday’s trade.
a2 Milk shares are still up 34.33% this year despite yesterday’s slump to trail only Bellamy’s shares amongst the dairy companies.
Bubs Australia Ltd (ASX: BUB) edged 0.50% higher yesterday in a more positive day and has more than doubled since the start of 2019.
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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended BUBS AUST FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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