The beekeeper-owners of Capilano Honey have thrown their support behind a private equity takeover bid for the Australian company.
Capilano Beekeepers Limited – the holder of the controlling foundation share in ASX-listed Capilano – has given its support to the bid from China-focused private equity player Wattle Hill and its partner Roc Partners.
In a statement, Capilano said bid consortium members have met with beekeepers around the country since the bid was announced on August 13 and their plans for the future of the company have had a positive reception.
Capilano’s board has already endorsed the Wattle Hill bid, which comprises a scheme of arrangement offering Capilano shareholders either $20.06 a share in cash or a one-for-one share swap in the new owner.
If the takeover proceeds, Capilano Beekeepers says it will transfer its controlling stake into the new company for a consideration of $1 and representation on the new company’s board.
Bega Cheese has emerged as a potential rival since the private equity bid surfaced, with the dairy processor and food producer taking a 5.76 per cent stake in Capilano but making no announcement on its intentions.
Capilano shares were down 17 cents to $21.11 at 1038 AEST – down from an all-time high of $22 reached on Monday.