The Youfoodz Holdings Ltd (ASX: YFZ) share price is going bananas and is up over 78% after receiving a takeover offer from Hellofresh (ETR: HFG).
Hellofresh takeover offer of Youfoodz
Youfoodz management said that it has accepted a takeover offer from Hellofresh for 100% of Youfoodz shares at $0.93 per share. This represents a full valuation of $125.3 million.
The offer price of $0.93 per share is 82% higher than the previous close share price of $0.51 per share.
The Youfoodz Board said that it unanimously recommends that Youfoodz shareholders vote in favour of the takeover, as long as it continues to be in the best interests of Youfoodz shareholders. RGT Capital, a holder of 57.4% of Youfoodz shares intends to vote in favour of the takeover offer.
The company said that each director of Youfoodz who owns or controls any Youfoodz shares also intend to vote in favour of the takeover.
Youfoodz shareholders do not need to take any actions at the current time.
Management said that the offer is subject to customary conditions before it can proceed. An independent expert will be appointed to prepare a report on whether the takeover is in the best interests of Youfoodz shareholders. This report and other information is expected to be sent to Youfoodz shareholders in September 2021.
Youfoodz shareholders will be able to vote on the takeover at a shareholder meeting expected to be held in October 2021.
The company said that once conditions are met, the takeover is expected to be implemented in October or November 2021.
Hellofresh and Youfoodz go hand-in-hand
Management said that this transaction will combine Youfoodz strength in developing and manufacturing ready-made meals with Hellofresh’s expertise in supply chain management, technology and direct-to-consumer marketing. Both companies are unified in their purpose to provide Australians with “delicious, high quality and affordable fresh meals”.
Summary thoughts on Youfoodz and the share price
If I were a shareholder of Youfoodz who had bought within the last few months, I would be quite pleased to see this offer.
For investors who have held Youfoodz shares since it listed in December 2020, the takeover price might not look as good, considering the listing share price was $1.50 per share. Although this could be seen as an opportunity to ‘recover lost ground’ at a solid share price and redeploy that money elsewhere.
If I were looking to redeploy cash for growth here are some ASX growth shares I would read up on and consider.
