Capilano set for $190 million takeover bid by Wattle Hill, Roc Companions

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AUSTRALIA’S largest honey producer, Capilano Honey, is about to be taken over by a non-public fairness group specialising in China-focused agricultural exports.

Capilano shares have jumped 25 per cent to a two-year excessive of $19.54 after the honey group’s board endorsed a proposal from a consortium composed of personal fairness fund Wattle Hill and funding supervisor Roc Companions.

Wattle Hill was co-founded by Albert Tse, the husband of Jessica Rudd, daughter of former Australian prime minister Kevin Rudd.

It has places of work in Sydney, Hong Kong and Beijing and is concentrated on Australian companies which might be set to capitalise on booming Chinese language center class demand.

Former Packer household adviser Ashok Jacob is on Wattle Hill’s funding committee.

The proposed scheme of association affords Capilano shareholders both $20.06 a share in money or a one-for-one share swap within the new proprietor.

Roc Companions was fashioned from a buyout of a Macquarie Group non-public markets enterprise and has involvement within the Australian Wagyu beef and oyster industries.

Capilano managing director Ben McKee mentioned the consortium bid would give the corporate capability to construct as much as a global-scale enterprise.

“Wattle Hill’s sturdy relationships in Asian markets supplies a possibility to unlock the potential of Capilano Group’s premium and therapeutic manufacturers,” Dr McKee mentioned.

Wattle Hill and Roc Companions are being suggested by Macquarie Capital and regulation agency KWM in addition to accounting agency PwC.

The transfer comes after Capilano has confronted backlash from shoppers and native beekeepers over its use of Chinese language and Argentinian honey in its Allowrie product.

In July, Coles stopped stocking Capilano Honey’s controversial Allowrie product.

On the time, Dr McKee confirmed the choice however mentioned the corporate was working with Coles on a substitute.

“Coles is a key enterprise associate of ours and we have now labored with them to exchange the Allowrie Model with a variety of recent product improvements in Capilano Model which might be 100 per cent Australian honey,” he mentioned.

Dr McKee additionally mentioned all Capilano branded product contained 100 per cent Australian sourced honey.

The proposed scheme of association affords Capilano shareholders both $20.06 a share in money or a one-for-one share swap within the new proprietor.

Shareholders choosing the share possibility even have the proper to take part in an additional possibility to purchase shares within the new firm.

A gathering for shareholders to contemplate the supply will likely be held in November. It’ll require 75 per cent of all votes forged, and the assist of half of all voting Capilano shareholders, to cross.

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