Capilano bidder sweetens offer

THE private- equity consortium behind the takeover bid for Capilano Honey has improved its offer.

The group – led by Australian- Chinese private equity fund Wattle Hill and investment manager ROC Partners – is now offering $ 21 a share for the nation’s biggest honey producer.

The new bid is up from an original offer price of $ 20.06 but still leaves open the possibility of dairy group Bega Cheese making its own move, having built up a near 16 per cent stake in the company.

Capilano chairman Trevor Morgan said yesterday the new offer represented “an even better deal” for shareholders.

“The Capilano directors unanimously recommend that Capilano shareholders vote in favour of the scheme, in the absence of a superior proposal, and subject to the independent expert continuing to conclude that the scheme is fair and reasonable, and in the best interests of the Capilano shareholders,” Mr Morgan said in a statement.

Billionaire Kerry Stokes, one of the honey maker’s biggest shareholders, signalled his acceptance of Wattle Hill’s original offer and willingness to transfer his ownership into a new unlisted vehicle.

Signs are emerging that a bidding war could be brewing with Bega, which launched a raid on Capilano soon after the Wattle bid emerged.

Bega took its stake to 8.4 per cent in September and the food company, which owns Vegemite and makes its own peanut butter brand, has since lifted that to 15.6 per cent.