Investment firm launches $20 million takeover bid for Yowie
13 March 2019, Written by Business News Australia
Yowie (ASX: YOW) might be completely gobbled up by Australian investment firm Keybridge Capital (ASXL KBC) for a cool $20 million.
The underperforming confectioner is facing the takeover by Keybridge following a disappointing first half during which the company recorded a loss of $871,000.
Keybridge looks to be taking advantage of this slump and is offering 9.2 cents per share a significant premium to this morning's opening price of 7 cents per share.
However, since the announcement of the takeover shares in Yowie have shot up 27 per cent to $0.09.
The investment firm already owns 6 per cent of Yowie shares directly and has a 'relevant interest' in a further 12.2 per cent of Yowie via Aurora Funds Management.
Keybridge intends to take over Yowie in order to "exert material influence" and appoint new directors to steer the Yowie ship.
"Keybridge notes that Yowie has consistently failed to structure or conduct its business operations in a profitable manner and that Yowie has incurred significant losses in the ordinary course of its business," says Keybridge in its announcement of the takeover bid.
Keybridge also intends to conduct a strategic review of the company and its operations, assets and liabilities if the takeover is successful.
Yowie is yet to make a statement regarding the takeover bid.
Shares in Yowie are up 27.14 per cent to $0.09 per share at 10.57am AEDT.
Business News Australia
Author: Business News Australia