Australia Markets open in 2 hrs 4 mins

Bellamy’s Chinese takeover approved

Tom Richardson

Bellamy’s Australia Ltd (ASX: BAL) shareholders got an early Christmas present today after the Foreign Investment Review Board approved its takeover of the China Mengniu Dairy Company Limited (Mengniu). 

The September 16 takeover bid is worth $13.25 per share being a $12.65 per share cash offer plus a 60 cents per share fully franked special dividend to be paid prior to the scheme’s implementation. The offer valued Bellamy’s at around 30x FY 2019’s EBITDA at a 59% premium to the September 13 share price of $8.32.

At the time of the offer more than 10% of Bellamy’s outstanding shares were short sold to equal some painful losses for hedge funds betting on the share price falling. 

More generally the takeover demonstrates how the market for Australian infant formula in China remains strong with other businesses like the a2 Milk Company Ltd (ASX: A2M) and Bubs Australia Ltd (ASX: BUB) also posting strong growth in China.

The post Bellamy’s Chinese takeover approved appeared first on Motley Fool Australia.

Our Top 3 Blue Chip Shares for 2019 – NOW AVAILABLE!

You’re invited! For a limited time, The Motley Fool Australia is giving away an urgent new investment report detailing our 3 TOP BLUE CHIP SHARES to own in 2019.

So if you like trustworthy, stable, high-performing companies that pay fat fully franked dividends – we’ve got you covered!

Stock #1 is a beloved old Australian company turning its attention to high-margin businesses... and rapidly returning cash to shareholders with its hefty dividend...

While Stock #2 is an online powerhouse that’s rapidly gaining market share all around the globe... poised for years (or even decades) of tremendous growth...

Even better, Stock #3 offers a whopping 6.5% grossed-up dividend! Which beats the rates on term deposits right out of the water – and offers the potential for capital gains, too.

You can discover all three shares inside our new report right now. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a LIMITED TIME ONLY!

Simply CLICK HERE FOR YOUR FREE REPORT!

More reading

Motley Fool contributor Tom Richardson owns shares of A2 Milk. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended BUBS AUST FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019