Health food chain Oliver’s Real Food have announced a surprising suitor for a takeover bid.
In an ASX statement released yesterday, the company said they had received a bid from British based EG Group for $0.10 cash per share, in a deal estimated to be worth more than $25 million.
It comes just weeks after Caltex rejected their bid in favour of EG Group rival, Canadian based Couche-Tard.
Oliver’s, who operate 25 outlets, offer organic and health-focused fast food and ready made snacks in service station based restaurants.
Their board voted unanimously in favour of the bid, following extensive negotiations with EG Group, chairman Nicholas Dower said in a statement, adding it offered suppliers and supporters and opportunity for rapid growth.
“EG Group’s proposal represents a significant premium to Oliver’s recent trading levels and represents an attractive value outcome for shareholders,” Mr Dower said.
EG Group Australia CEO Mike McMenamin said they recognised Oliver’s as a leader in the health-food market.
“Oliver’s has developed a strong following in Australia, and has been very well received by our customers in trials at a number of our stores. This acquisition presents a great opportunity for us to
enter the Australian restaurant market and the potential to enhance our convenience offer across our 500+ store network.We look forward to the Oliver’s team joining the EG Australia family.”
The bid would be subject to a number of conditions, including shareholder and court approval and, if approval were granted, would proceed in July.