SYDNEY, AAP – Meal kit delivery provider HelloFresh wants to buy rival Youfoodz for $125 million as merger and acquisition activity continues on the share market.
HelloFresh is listed on the Frankfurt Stock Exchange and sells its meal kits online for home delivery in 15 countries, including Australia.
Youfoodz delivers meals and also has a wholesale arm which supplies supermarkets and convenience stores.
HelloFresh is offering 93 cents per share to Youfoodz ASX investors.
The board of the latter has encouraged shareholders to accept.
The major shareholder, RGT Capital – which has 57.4 per cent of shares, has already said it intends to vote for the proposal.
Shareholders are expected to vote in October.
Youfoodz has three production facilities in Brisbane and joined the ASX in December.
Shares in YouFoodz were higher by 77.45 per cent to 90 cents at 1421 AEST.
There has been increased merger and acquisition activity on the share market as some companies’ stocks falter amid the pandemic.
On Monday, retail giant Wesfarmers made a $687 million offer for Priceline Pharmacy owner Australian Pharmaceutical Industries.