SYDNEY, June 2 (Reuters) - Australian packaged food supplier Patties Foods Ltd PFL.AX said on Thursday it has accepted a A$231 million ($167 million) takeover offer from private equity group Pacific Equity Partners.
Patties said its board has recommended the non-binding and conditional cash offer it received on Monday, which was priced at A$1.65 a share, a 24-percent premium to Patties' Friday's close.
The takeover offer included an equity alternative, Patties said, which would enable shareholders to retain an indirect interest in the business.
"Whilst the board remains confident in management's plans for growth and innovation in the core brands and the business is experiencing strong momentum, the scheme represents an attractive value for shareholders," said Patties chairman, Mark Smith in a statement.
The takeover is expected to be completed in September 2016.
Patties, which makes frozen sweet and savoury foods including pies, sausage rolls, pastries, crumbles and cakes, posted a 12 percent decline in first-half net profit in February, largely due to a product recall. company was forced to recall a frozen mixed berries product last year amid concerns it had caused an outbreak of hepatitis A. Laboratory tests later cleared the berries of carrying the disease. ($1 = 1.3797 Australian dollars)