BEGA MAKES BID FOR PEANUTS

CEO says takeover will be good for com­pany’s fu­ture

South Burnett Times - - FRONT PAGE - Tobi Lof­tus tobi. lof­tus@ south­bur­nett­times. com. au

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.

PHOTO: TOBI LOF­TUS

GOOD BUSI­NESS: PCA CEO John Howard says a Bega takeover of PCA would pro­vide cer­tainty.

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