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Hot Topic NBR Focus: GMO
Hot Topic NBR Focus: GMO
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Charlie’s bid fair, says expert


Valuer Grant Samuel today lent its support to the Charlie's Group board's recommendation that shareholders accept a 44c-a share offer by Japanese beverage giant Asahi, saying it was fair and reasonable.

Duncan Bridgeman
Thu, 21 Jul 2011

Valuer Grant Samuel today lent its support to the Charlie’s Group board’s recommendation that shareholders accept a 44c-a share offer by Japanese beverage giant Asahi, saying it was fair and reasonable.

Asahi has despatched its offer document outlining its $129 million bid for the juice company founded by Marc Ellis, Stefan Lepionka and Simon Neal.

A report by independent expert Grant Samuel said the offer price was at the top end of its assessed value range of 41 to 45c-a-share and represented “a full and fair multiple” of Charlie’s forecast earnings for the year to June 30, 2012 of 11.4 times.

Major shareholders, including the founders, have already committed to accepting the offer by July 22. Their combined holdings represent 52.17% of the shares on issue.

Asahi requires acceptance by shareholders representing 90% of Charlie’s shares as well as OIO approval.

Grant Samuel noted that the liklihood of a competing offer was low and the locked in shareholders had no flexibility to accept higher offers.

Grant Samuel also noted that an interesting outcome of Asahi making its offer was that the budgeted earnings for Charlie’s for 2012 have been made public.

“It is possible that the disclosure of an expected material uplift in earnings could elicit offers from other parties if Asahi is not successful in acquiring Charlie’s.

Charlie’s is forecasting ebitda of $11.3 million in June year 2012, up from the predicted $4.8 million in 2011.

Duncan Bridgeman
Thu, 21 Jul 2011
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Charlie’s bid fair, says expert
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