Bega Cheese says the offer from JV partner Vita International to buy its share of Vitasoy Australia for $27.5 million was “substantially less” than what it was worth and it would dispute the claim.
Bega was taken by surprise in October, went it learnt of Vita’s intention to buy out its share through a statement on the Hong Kong Stock Exchange.
Bega’s subsidiary National Food Holdings owns 49 per cent of Vitasoy Australia, with the remaining 51 per cent owned by Hong Kong company Vita International, a subsidiary of Vitasoy International.
Bega inherited the JV when it acquired Lion’s Dairy & Drinks business.
The provisions gave Vita International an option to acquire all shares held by NHFL at a price either agreed between the parties or at a fair value determined by an independent expert. The call option could be exercised during a 90-day period from the end of October 2022.
The purchase price would either be a fair value agreed by the parties or determined by an independent expert. Bega said it disputed the amount offered by Vita International.
IRI Total Business Scan reports the Australian plant-based milk category is worth $380 million with annual growth of around 11.7 per cent. Bega holds a 26 per cent share of the Australian market with Vitasoy.
