The acquisition of Australian confectionery firm Yowie by Keybridge Capital is moving forward. Last week, Yowie noted that the takeover bid had not progressed due to Keybridge Capital not sending the bidder’s statement within the specified 28-day period. However, Keybridge Capital attributed the delay to “an administrative oversight during the Christmas holiday period” and has now obtained consent from the Australian Securities and Investments Commission (ASIC) to proceed with the takeover bid.
Moreover, Keybridge has responded to ASIC queries and will be updating the new bidder’s statement accordingly. The ASIC’s approval is contingent upon Keybridge delivering the new bidder’s statement to Yowie, ASIC, and the ASX by Friday and to Yowie shareholders by 16 February. Keybridge is offering an “off-market takeover offer” of 3.4 Australian cents per ordinary share for Yowie.
Furthermore, Yowie has faced challenges, with the business reporting a loss in its most recent annual results. Nonetheless, the company acquired the assets of Australia-based chocolate producer Ernest Hillier last year despite its financial troubles. Keybridge, which previously owned 23% of Yowie’s shares, sought a new board of directors’ appointment in 2020 and has been seeking to increase its level of influence in Yowie to steer its strategic direction.
Yowie, based in Perth, markets its products in Australia and the US, promoting engagement with the natural world. The company outsources production and distribution. Its revenue in the year to 30 June was $13.3m but declined by 15% from the corresponding period.
Keybridge’s offer to acquire Yowie aligns with the food and beverage industry trends and consumer trends within the food and drink business. Yowie’s potential acquisition showcases the ongoing consolidation within the food and beverage industry, reflecting a broader trend of industry consolidation and cross-border acquisitions.
