Keybridge Capital Ltd has proposed an off-market takeover bid for all ordinary shares of Yowie Group Ltd, a proposal that could reshape the future of the company. This takeover bid, unveiled on December 29, is designed to bolster Keybridge's influence over Yowie’s strategic direction.
Yowie Group has cautioned its shareholders to hold off on any decisions until the board provides a formal recommendation on this matter. The shareholders now stand at a crossroads, having to choose between the certain cash value offered for their shares or the risks associated with retaining their Yowie shares.
The offer price set by Keybridge is 3.4 cents per share, a notable increase from the recent trading prices. This price is 9.68% higher than the one-month volume weighted average price leading up to December 28, 2023, and 17.24% above the closing price of the shares on the day before the offer was announced.
A key aspect of this offer is its almost unconditional nature, with the primary condition being compliance with specific subsections of the Corporations Act 2001. This presents an interesting scenario for the shareholders, providing a straightforward cash offer that could lead to an immediate financial return.
Furthermore, Keybridge, through its broker Ord Minnett, has been granted the right to purchase Yowie shares on the market during the bid period at prices up to or below the offer price. This move gives shareholders an alternative avenue to sell their shares and receive cash payment swiftly.
In addition, Keybridge has fulfilled its regulatory obligations by lodging its Bidder’s Statement with the Australian Securities & Investments Commission and Yowie. This document, which accompanies this announcement, is crucial for shareholders, providing detailed information about the offer.
Yowie shareholders are encouraged to peruse this document carefully and seek professional advice to make an informed decision about their shares.
Keybridge has also set December 28, 2023, as the record date for determining the shareholders eligible to receive the Bidder’s Statement and offers, as mandated by section 633(4) of the Corporations Act.
In this crucial phase, Yowie’s shareholders are advised to exercise due diligence and consult with financial experts, as the decision they make could significantly impact their investments in the company. The anticipation now builds for the Yowie Board's formal recommendation, which will provide further clarity to the shareholders amidst this pivotal corporate development.
Key highlights
- Offer price: The bid is at 3.4 cents per Yowie share, translating to a 9.68% increase over the one-month volume weighted average price (VWAP) up to December 28, 2023, and a 17.24% premium over the closing price on the day before the offer.
- Cash offer: Keybridge's 100% cash offer provides shareholders the option to secure a definite cash value for their Yowie shares, assuming the offer meets all conditions.
- Conditional terms: The offer is largely unconditional, except for a stipulation related to the Corporations Act 2001 (Cth) subsections 652C(1) or 652C(2).
- On-market purchases: Keybridge, through its broker Ord Minnett, is entitled to buy Yowie shares on the market during the bid period at or below the offer price, with the option to withdraw this instruction at their discretion.