Golden Circle directors have given the green light to the takeover by H J Heinz for a reported $288M. The details and timing have yet to be finalised but it seems inevitable that the Sales & Marketing functions will be leaving the Sunshine State and moving South.
Heinz have offered a 313% premium to the companies last traded price of the stock on the NSE. This should prove very attractive to the owners who are fruit and vegetable growers in the majority. Their main concern will be security of supply agreements with the entity under Heinz. Heinz managing director, Peter Widdows gave this assurance yesterday, as reported in the Herald Sun;
“Our desire is to maintain contracts between growers and Golden Circle, which would benefit from potential increases in volume over time as the combined sales and marketing strength of a combined Golden Circle and Heinz is realised.”
The offer price by Heinz at $1.65, is significantly higher than the 30% stake taken by Anchorage Capital ($0.80) last year and the bids by Coca Cola Amatil and P&N Beverages ($1.00 & $1.05) around that time. The may be another interested party but at this stage they have failed to show their hand.
Tim
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