Sweet-talking Bega mulls Capilano bid

BEGA Cheese executive chairman Barry Irvin says the cheese and breakfast spreads maker is a logical owner of Capilano as it again ups its shareholding in the honey producer.

Mr Irvin left the door open to making a bid for Capilano, which is already assessing an offer from a Chinese-Austra- lian private equity group, as Bega revealed it had lifted its stake in the nation’s biggest honey producer to 15.6 per cent.

Addressing Bega’s annual meeting, Mr Irvin said a simple stroll through the breakfast spread section of any supermarket showed honey was located right alongside Vegemite and peanut butter.

Bega owns Vegemite and makes its own brand of peanut butter.

“Obviously we have significant capability in that spreads section,” Mr Irvin said yesterday.

“We have Australia’s most iconic brand in Vegemite and we are having good success with Bega peanut butter.

“All the capability that this business has, it can very easily adopt a strong brand in honey that is considered healthy for consumers and is a growing category.”

Despite highlighting the benefits of adding honey to the Bega business, Mr Irvin stressed the company had not made any decision on whether it would launch a takeover offer.

The clock is ticking on any bid from Bega as Capilano shareholders prepare to vote on a $190 million takeover offer from private equity fund Wattle Hill and investment manager Roc Partners.

Capilano’s board has unanimously recommended its takeover bid, as has its biggest shareholder, Wroxby, an investment vehicle backed by media mogul Kerry Stokes.

Shares in Bega gained 0.3 per cent yesterday to $6.19. Capilano closed flat at $20.16.