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Bega Cheese plans to sell Capilano stake

James Hall
Bega Cheese plans to vote in favour of selling its stake in Capilano Honey

The buzz had been Bega Cheese was interested in buying Capilano Honey, but the Victorian dairy company is instead selling its stake to a Chinese-focused consortium.

Bega, which became the second largest stakeholder in the honey brand in September, said in a statement it will sell its 15.6 per cent holding to the Bravo BidCo Pty Ltd consortium.

A consortium of Wattle Hill RHC Fund and ROC Capital Pty Ltd - Bravo BidCo - in August offered $20.06 per share for Capilano.

Bega Cheese upped its stake in the ASX-listed honey company a month later, paying $5.38 million for 255,291 shares at an average of $21.08 per security.

The move prompted rumours Bega would move to take total control of Capilano, but the beekeeper-owners of the company threw their support behind the private equity takeover.

Capilano Beekeepers Limited - the holder of the controlling foundation share in the listed company - said it would transfer its stake into the new company for a consideration of $1 and representation on the new company's board if the takeover from Bravo went ahead.

Bravo then month sweetened its bid to $21 per share, raising its proposal to $198.6 million.

Capilano shares were up 22 cents, or 1.1 per cent, at $20.86 at 1344 AEDT, while Bega Cheese shares were up one cent, or 0.2 per cent, at $6.02.