BEGA MAKES BID FOR PEANUTS
CEO says takeover will be good for company’s future
PCA boss says dairy giant’s takeover would be good for business
BEGA Cheese has announced a $ 10 million bid to take over the Peanut Company of Australia.
Chief executive officer John Howard said the proposed Bega Cheese takeover of PCA would provide certainty for the company, which has not been in the best financial position for a number of years.
“Bega is our largest customer,” he said.
“They are a company that has a heritage very similar to ours.
“It provides certainty and sustainability going forward. To have a large food player with a similar history to ourselves that sees the opportunity, that provides a lot of certainty for staff, customers, and growers.”
Bega Cheese immediately took over 19.99 per cent of PCA’s shares on Friday, at 83 cents a share, and has made an unconditional takeover bid to acquire all the other issued shares not currently held by Bega.
Mr Howard said this provided an immediate injection of $ 1.88 million into PCA.
“This cash injection ( will) help with opportunities such as working with growers to increase size of crops and do some additional marketing for our Picky Picky branded product that we’re proud of,” Mr Howard said.
“Bega sees the opportunity that is there in peanuts and growing that crop, a crop where we only grow nationally 30- 40 per cent of what gets consumed here, there is a big opportunity to grow that.”
PCA has been one of Australia’s leading suppliers of peanuts for 90 years.
The takeover is subject to the Independent Expert’s opinion and in the absence of a superior proposal.
GOOD BUSINESS: PCA CEO John Howard says a Bega takeover of PCA would provide certainty.