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Morningstar, Inc.

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Thematic (Sector/Industry)

<p>The Australian grocery industry continues to evolve and everyday dry groceries are likely to become even more commoditised. Aldi re-established the discount channel in Australia and is forecast to ultimately capture close to 10% market share. On this premise, we have re-examined our assumptions on market share and profitability for the Australian supermarket sector and conclude EBIT margins are expected to tighten further. Price competition has heated up as the two dominating players, <a href="https://www.smartkarma.com/entities/500" target="_blank" data-smartkarma-citation="entities:500:1">Woolworths Ltd (WOW AU)</a> and Coles, expand their everyday low price lines to preserve market share. The price cutting has resulted in food price deflation and tightening of operating margins, especially at Woolworths. Coles plans to pass on efficiency gains to consumers by ongoing price cutting, and we expect Woolworths to follow suit, effectively capping operating margins of their supermarket businesses at sustainable levels of 4%. <a href="https://www.smartkarma.com/entities/14632" target="_blank" data-smartkarma-citation="entities:14632:1">Metcash Ltd (MTS AU)</a> network of independent retailers is exposed to the same dynamics, and is continuing with its Price Match programme. However, IGA stores are less able to compete on price than their integrated competition and we expect the network to continue losing a disproportionately high amount of share. On top of the near-term challenges, we identify two conceivable longer-term threats. The potential entry of discounter Lidl or online grocer AmazonFresh, or both, would introduce further pricing tension and increase pressure on margins even more.</p><p>These key changes lowered <a href="https://www.smartkarma.com/entities/500" target="_blank" data-smartkarma-citation="entities:500:1">Woolworths Ltd (WOW AU)</a>' fair value estimate to AUD 22 from AUD 28. We reduced <a href="https://www.smartkarma.com/entities/1104" target="_blank" data-smartkarma-citation="entities:1104:1">Wesfarmers Ltd (WES AU)</a> fair value estimate to AUD 39.00 per share from AUD 42.00, predominantly due to lower margin estimates. For <a href="https://www.smartkarma.com/entities/14632" target="_blank" data-smartkarma-citation="entities:14632:1">Metcash Ltd (MTS AU)</a>, we have materially increased our fair value estimate to AUD 1.80 from AUD 1.10 due to a much-improved outlook on IGA's market share</p><p><em>Analyst: Johannes Faul, CFA </em></p>

The Australian grocery industry continues to evolve and everyday dry groceries are likely to become even more commoditised. Aldi re-established the discount channel in Australia and is forecast to ultimately capture close to 10% market share. On this premise, we have re-examined our assumptions on market share and profitability for the Australian supermarket sector and conclude EBIT margins are expected to tighten further. Price competition has heated up as the two dominating players, Woolworths Ltd (WOW AU) and Coles, expand their everyday low price lines to preserve market share. The price cutting has resulted in food price deflation and tightening of operating margins, especially at Woolworths. Coles plans to pass on efficiency gains to consumers by ongoing price cutting, and we expect Woolworths to follow suit, effectively capping operating margins of their supermarket businesses at sustainable levels of 4%. Metcash Ltd (MTS AU) network of independent retailers is exposed to the same dynamics, and is continuing with its Price Match programme. However, IGA stores are less able to compete on price than their integrated competition and we expect the network to continue losing a disproportionately high amount of share. On top of the near-term challenges, we identify two conceivable longer-term threats. The potential entry of discounter Lidl or online grocer AmazonFresh, or both, would introduce further pricing tension and increase pressure on margins even more.These key changes lowered Woolworths Ltd (WOW AU)' fair value estimate to AUD 22 from AUD 28. We reduced Wesfarmers Ltd (WES AU) fair value estimate to AUD 39.00 per share from AUD 42.00, predominantly due to lower margin estimates. For Metcash Ltd (MTS AU), we have materially increased our fair value estimate to AUD 1.80 from AUD 1.10 due to a much-improved outlook on IGA's market shareAnalyst: Johannes Faul, CFA 

Aldi's Presence Makes a Return to Duopoly-Like Margins Unlikely

Founder Evidente. Top rated quantitative analyst, Evidente

Sam Ferraro

Founder Evidente. Top rated quantitative analyst

Evidente

Evidente is an independent financial education firm that delivers innovative financial advice to wholesale investors, including active long only funds, hedge funds, pension funds, and sovereign wealth funds, in Australia and globally.  Drawing on academic research in asset pricing, behavioural finance and portfolio construction, Evidente provides wholesale investors with commercial solutions to stock selection and asset allocation decisions across equities and other asset classes.

<ul><li>In the past week, two bottom up developments have dominated the financial market news flow in Australia: the belated announcement of CEO succession at Woolworths and renewed concerns that Australian banks represent a 'big short' thanks to rumours of the imminent collapse of residential house prices. </li><li>The losses announced by Woolworths in its home improvement division this week and decision to exit the business altogether serves as a timely and powerful signal to other companies about the dangers associated with investing for growth in the current environment of deficient demand.  Corporate Australia has already taken heed, with the economy on the precipice of a capex cliff.  The recently released ABS survey of capex intentions points to a 20% slide in business investment in the current financial year, which would represent the largest annual decline in over 25 years.</li><li>Any bubble talk around housing discounts the important role that dwelling investment and household consumption still has to play to support the outlook while the economy is on the precipice of a capex cliff.  Against the backdrop that interest rates will remain low for an extended period (and likely move lower from here), if there is a bubble in Australian housing it might well persist.  To take a cue from John Maynard Keynes, hedge funds seeking to capitalise on Australia's 'big short' will probably need an abundance of patience (and capital).</li></ul>

In the past week, two bottom up developments have dominated the financial market news flow in Australia: the belated announcement of CEO succession at Woolworths and renewed concerns that Australian banks represent a 'big short' thanks to rumours of the imminent collapse of residential house prices. The losses announced by Woolworths in its home improvement division this week and decision to exit the business altogether serves as a timely and powerful signal to other companies about the dangers associated with investing for growth in the current environment of deficient demand.  Corporate Australia has already taken heed, with the economy on the precipice of a capex cliff.  The recently released ABS survey of capex intentions points to a 20% slide in business investment in the current financial year, which would represent the largest annual decline in over 25 years.Any bubble talk around housing discounts the important role that dwelling investment and household consumption still has to play to support the outlook while the economy is on the precipice of a capex cliff.  Against the backdrop that interest rates will remain low for an extended period (and likely move lower from here), if there is a bubble in Australian housing it might well persist.  To take a cue from John Maynard Keynes, hedge funds seeking to capitalise on Australia's 'big short' will probably need an abundance of patience (and capital).

What the Capex Cliff Means for Australia's 'Big Short'

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Vitalharvest Freehold Trust / Event-Driven

<div>
<div class="content-highlight">
<p><em><strong>Corrigenda: There is an error in this Insight. Please note the correction.</strong></em></p>
<p><em><strong>Correction: All references below to Macquarie Agricultural Funds Management (MAFM)'s bumped offer on 23 April should read A$1.24/share instead of A$1.23/share.</strong></em></p>
</div>
<p>Back on the 9 November 2020, orchard landlord <a href="https://www.smartkarma.com/entities/vitalharvest-freehold-trust" target="_blank" data-smartkarma-citation="entities:29120:1" rel="noopener">Vitalharvest Freehold Trust (VTH AU)</a> <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02306235-3A554957?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">received</a> an all-cash cash Offer of $1.00/unit from Macquarie Infrastructure and Real Assets, by way of a Scheme. Should the Scheme not be approved by unitholders, MIRA offered to buy all of VTH's assets for A$300mn in cash. The asset sale requires a reduced unitholder approval threshold.</p>
</div>
<div>
<p>Macquarie Agricultural Funds Management (MAFM) and VTH subsequently entered into a <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02309943_PS-3A555619?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">SID</a>,  for A$1.00/unit, which covered both the Scheme and asset sale. Absent a superior Offer, Primewest (19.9%) said it would support MAFM's Offer.</p>
<p>The entry of  Roc Private Equity on the 26 February has lead to a two-month competitive bidding situation, culminating in this morning's Offer of <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02366483-3A565774?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">A$1.23/share</a> from MAFM.</p>
</div>
<div>
<p>Below is a timeline of events that subsequently transpired (with insights in bold &amp; italics) since the initial announcement:</p>
</div>
<div>
<table class="table table-striped">
<tbody>
<tr>
<td style="width: 73.9881px;">
<h3>Date</h3>
</td>
<td style="width: 629.544px;">
<h3>Data in the Date</h3>
</td>
</tr>
<tr>
<td style="width: 73.9881px;">9-Nov-21</td>
<td style="width: 629.544px;">
<p>An all-cash cash Offer of $1.00/unit from Macquarie Infrastructure and Real Assets was <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02306235-3A554957?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a></p>
<p><em><strong><a href="https://skr.ma/wjJLA" target="_blank" rel="noopener">Vitalharvest (VTH AU): Macquarie Doesn't See A Lemon</a></strong></em></p>
</td>
</tr>
<tr>
<td style="width: 73.9881px;">17-Nov-21</td>
<td style="width: 629.544px;">Macquarie Agricultural Funds Management (MAFM) and VTH entered into a <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02309943_PS-3A555619?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">SID</a>,  for A$1.00/unit. The SID covered both the Scheme and asset sale, wherein the distribution was expected to be equivalent under either outcome. Subject to a superior proposal, Primewest (19.9%) said it would support MAFM's Offer.</td>
</tr>
<tr>
<td style="width: 73.9881px;">1-Feb-21</td>
<td style="width: 629.544px;">An agreement was <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02336388-3A560402?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">reached</a> whereby MAFM would pay an additional A$0.025/unit from rent received in the first half of the year up to 31 December. The combined value of the distribution - be it under the Scheme or the asset sale - would be A$1.025/unit. </td>
</tr>
<tr>
<td style="width: 73.9881px;">26-Feb-21</td>
<td style="width: 629.544px;">VTH announced a non-binding <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02347268-3A562484?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">Offer</a> from Roc Private Equity of A$1.08/unit by way of a Scheme, which also incorporates an asset sale component in a similar vein to that of MAFM's. VTH said it had <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02350149-3A563012?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">assessed</a> the proposal and determined that it would be reasonably likely to result in a superior proposal. The unitholder meeting to vote on MAFM's offer, initially to be held on the 4 March, was subsequently postponed.</td>
</tr>
<tr>
<td style="width: 73.9881px;">11-Mar-21</td>
<td style="width: 629.544px;">
<p>MAFM <a href="https://www.asx.com.au/asxpdf/20210311/pdf/44tkfcwkr3hm7c.pdf" target="_blank" rel="noopener">matched</a> Roc's Offer of A$1.08/unit, plus extended the payment of the A$0.025/unit dividend. </p>
<p><em><strong><a href="https://skr.ma/BcLPi" target="_blank" rel="noopener">Vitalharvest (VTH AU): Macquarie Ups Its Offer</a></strong></em></p>
</td>
</tr>
<tr>
<td style="width: 73.9881px;">18-Mar-21</td>
<td style="width: 629.544px;">
<p>Roc <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02355011-3A563788?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">bumps</a> its non-binding proposal to A$1.12/unit, either via a Scheme or from proceeds from an asset sale. A permitted dividend of A$0.025/unit, similar to that under MAFM's Offer, would be bolted on to that.</p>
<p><em><strong><a href="https://skr.ma/dhdGy" target="_blank" rel="noopener">Vitalharvest (VTH AU): Roc Blinks, And Bumps</a></strong></em></p>
</td>
</tr>
<tr>
<td style="width: 73.9881px;">1-Apr-21</td>
<td style="width: 629.544px;">
<p>Roc's A$1.12/share now <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02359878-3A564660?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">binding</a>. Matching rights for MAFM triggered.</p>
</td>
</tr>
<tr>
<td style="width: 73.9881px;">7-Apr--21</td>
<td style="width: 629.544px;">
<p>MAFM <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02361098-3A564868?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">matches</a> at A$1.12/share. A dividend of A$0.025/unit is also to be permitted and added.</p>
</td>
</tr>
<tr>
<td style="width: 73.9881px;">8-Apr-21</td>
<td style="width: 629.544px;">
<p>Roc <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02361506-3A564934?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">bumps</a> its binding proposal to A$1.16/unit, either via a Scheme or from proceeds from an asset sale. A dividend of A$0.025/unit is also to be permitted and added. Matching rights for MAFM triggered.</p>
</td>
</tr>
<tr>
<td style="width: 73.9881px;">14-Apr-21</td>
<td style="width: 629.544px;">
<p>MAFM <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02363378-3A565247?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">matches</a> at A$1.16/share. A dividend of A$0.025/unit is also to be permitted and added.</p>
</td>
</tr>
<tr>
<td style="width: 73.9881px;">15-Apr-21</td>
<td style="width: 629.544px;">
<p>Roc <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02363884-3A565352?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">bumps</a> its binding proposal to A$1.18/unit, either via a Scheme or from proceeds from an asset sale. A dividend of A$0.025/unit is also to be permitted and added. Matching rights for MAFM triggered.</p>
</td>
</tr>
<tr>
<td style="width: 73.9881px;">22-Apr-21</td>
<td style="width: 629.544px;">
<p>MAFM <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02365946-3A565663?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">bumps</a> to A$1.19/share. A dividend of A$0.025/unit is also to be permitted and added.</p>
</td>
</tr>
<tr>
<td style="width: 73.9881px;">22-Apr-21</td>
<td style="width: 629.544px;">
<p>Roc <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02366483-3A565774?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">bumps</a> its binding proposal to A$1.23/unit, either via a Scheme or from proceeds from an asset sale. A dividend of A$0.025/unit is also to be permitted and added.</p>
</td>
</tr>
<tr>
<td style="width: 73.9881px;">23-Apr-21</td>
<td style="width: 629.544px;">
<p>MAFM <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02366483-3A565774?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">bumps</a> to A$1.23/share. A dividend of A$0.025/unit is also to be permitted and added.</p>
</td>
</tr>
<tr>
<td colspan="2" style="width: 724.147px;"><em>Source: ASX </em></td>
</tr>
</tbody>
</table>
</div>
<p>The offer is now up 25.5% (including the dividend) since MAFM's first Offer. Or around A$47mn increase in the deal size.</p>
<div>
<p>This competitive bidding situation looks set to run some more.</p>
</div>
<div>
<p>More below the fold.</p>
</div>



Corrigenda: There is an error in this Insight. Please note the correction.
Correction: All references below to Macquarie Agricultural Funds Management (MAFM)'s bumped offer on 23 April should read A$1.24/share instead of A$1.23/share.

Back on the 9 November 2020, orchard landlord Vitalharvest Freehold Trust (VTH AU) received an all-cash cash Offer of $1.00/unit from Macquarie Infrastructure and Real Assets, by way of a Scheme. Should the Scheme not be approved by unitholders, MIRA offered to buy all of VTH's assets for A$300mn in cash. The asset sale requires a reduced unitholder approval threshold.


Macquarie Agricultural Funds Management (MAFM) and VTH subsequently entered into a SID,  for A$1.00/unit, which covered both the Scheme and asset sale. Absent a superior Offer, Primewest (19.9%) said it would support MAFM's Offer.
The entry of  Roc Private Equity on the 26 February has lead to a two-month competitive bidding situation, culminating in this morning's Offer of A$1.23/share from MAFM.


Below is a timeline of events that subsequently transpired (with insights in bold &amp; italics) since the initial announcement:






Date


Data in the Date



9-Nov-21

An all-cash cash Offer of $1.00/unit from Macquarie Infrastructure and Real Assets was announced
Vitalharvest (VTH AU): Macquarie Doesn't See A Lemon



17-Nov-21
Macquarie Agricultural Funds Management (MAFM) and VTH entered into a SID,  for A$1.00/unit. The SID covered both the Scheme and asset sale, wherein the distribution was expected to be equivalent under either outcome. Subject to a superior proposal, Primewest (19.9%) said it would support MAFM's Offer.


1-Feb-21
An agreement was reached whereby MAFM would pay an additional A$0.025/unit from rent received in the first half of the year up to 31 December. The combined value of the distribution - be it under the Scheme or the asset sale - would be A$1.025/unit. 


26-Feb-21
VTH announced a non-binding Offer from Roc Private Equity of A$1.08/unit by way of a Scheme, which also incorporates an asset sale component in a similar vein to that of MAFM's. VTH said it had assessed the proposal and determined that it would be reasonably likely to result in a superior proposal. The unitholder meeting to vote on MAFM's offer, initially to be held on the 4 March, was subsequently postponed.


11-Mar-21

MAFM matched Roc's Offer of A$1.08/unit, plus extended the payment of the A$0.025/unit dividend. 
Vitalharvest (VTH AU): Macquarie Ups Its Offer



18-Mar-21

Roc bumps its non-binding proposal to A$1.12/unit, either via a Scheme or from proceeds from an asset sale. A permitted dividend of A$0.025/unit, similar to that under MAFM's Offer, would be bolted on to that.
Vitalharvest (VTH AU): Roc Blinks, And Bumps



1-Apr-21

Roc's A$1.12/share now binding. Matching rights for MAFM triggered.



7-Apr--21

MAFM matches at A$1.12/share. A dividend of A$0.025/unit is also to be permitted and added.



8-Apr-21

Roc bumps its binding proposal to A$1.16/unit, either via a Scheme or from proceeds from an asset sale. A dividend of A$0.025/unit is also to be permitted and added. Matching rights for MAFM triggered.



14-Apr-21

MAFM matches at A$1.16/share. A dividend of A$0.025/unit is also to be permitted and added.



15-Apr-21

Roc bumps its binding proposal to A$1.18/unit, either via a Scheme or from proceeds from an asset sale. A dividend of A$0.025/unit is also to be permitted and added. Matching rights for MAFM triggered.



22-Apr-21

MAFM bumps to A$1.19/share. A dividend of A$0.025/unit is also to be permitted and added.



22-Apr-21

Roc bumps its binding proposal to A$1.23/unit, either via a Scheme or from proceeds from an asset sale. A dividend of A$0.025/unit is also to be permitted and added.



23-Apr-21

MAFM bumps to A$1.23/share. A dividend of A$0.025/unit is also to be permitted and added.



Source: ASX 




The offer is now up 25.5% (including the dividend) since MAFM's first Offer. Or around A$47mn increase in the deal size.

This competitive bidding situation looks set to run some more.


More below the fold.


Vitalharvest (VTH AU): Bumpity Bumpity Berry Bidding

<p>This time last month, <strong><a href="https://www.smartkarma.com/entities/11075" target="_blank" data-smartkarma-citation="entities:11075:1">Capilano Honey (CZZ AU)</a></strong> announced a <a href="https://www.asx.com.au/asxpdf/20180813/pdf/43x8ccth159bym.pdf" target="_blank">Scheme Implementation Agreement</a> with Bravo - a consortium involving Wattle Hill RHC Fund and ROC Capital P/L - entitling CZZ's shareholders to $20.06/share (cash), a 28.2% premium to the last close at the time. A scrip alternative is also available on a 1:1 basis, with an option to subscribe for a further 0.5 Holdco shares for every 1 share held in CZZ, subject to scaleback.  The scheme is subject to at least 15% of shareholders electing to receive scrip and Wroxby P/L, a 20.6% shareholder, has given an irrevocable to vote in favour of the scheme and elect for the scrip alternative.</p>
<p>A counter offer could not be ruled out as negative media reports on the branding on some of its products, and a key customer announcing it will no longer stock certain honey blends, pulled down CZZ's shares price ahead of the announcement, suggesting Bravo's offer was opportunistic.</p>
<p><strong><a href="https://www.smartkarma.com/entities/7272" target="_blank" data-smartkarma-citation="entities:7272:1">Bega Cheese Ltd (BGA AU)</a> </strong>appears to agree and has recently built an 8.4% stake in CZZ - 7.2% since Bravo's announcement - with recent share purchases above Bravo's offer price, potentially leading to a competitive bidding situation unfolding.</p>

This time last month, Capilano Honey (CZZ AU) announced a Scheme Implementation Agreement with Bravo - a consortium involving Wattle Hill RHC Fund and ROC Capital P/L - entitling CZZ's shareholders to $20.06/share (cash), a 28.2% premium to the last close at the time. A scrip alternative is also available on a 1:1 basis, with an option to subscribe for a further 0.5 Holdco shares for every 1 share held in CZZ, subject to scaleback.  The scheme is subject to at least 15% of shareholders electing to receive scrip and Wroxby P/L, a 20.6% shareholder, has given an irrevocable to vote in favour of the scheme and elect for the scrip alternative.
A counter offer could not be ruled out as negative media reports on the branding on some of its products, and a key customer announcing it will no longer stock certain honey blends, pulled down CZZ's shares price ahead of the announcement, suggesting Bravo's offer was opportunistic.
Bega Cheese Ltd (BGA AU) appears to agree and has recently built an 8.4% stake in CZZ - 7.2% since Bravo's announcement - with recent share purchases above Bravo's offer price, potentially leading to a competitive bidding situation unfolding.

<p>Yesterday morning <strong><a href="https://www.smartkarma.com/entities/11075" target="_blank" data-smartkarma-citation="entities:11075:1">Capilano Honey (CZZ AU)</a></strong> announced it had entered into a <a href="https://www.asx.com.au/asxpdf/20180813/pdf/43x8ccth159bym.pdf" target="_blank">Scheme Implementation Agreement</a> with Bravo Holdco (HoldCo) - a consortium involving Wattle Hill RHC Fund &amp; ROC Capital P/L - entitling CZZ's shareholders to $20.06/share (cash), a 28.2% premium to last close and an implied FY18 PER and EV/EBITDA of 19.3x and 12.5x, respectively.</p>
<p>A scrip alternative is also available on a 1:1 basis. Shareholders opting for the scrip alternative can also subscribe for a further 0.5 Holdco…</p>

Yesterday morning Capilano Honey (CZZ AU) announced it had entered into a Scheme Implementation Agreement with Bravo Holdco (HoldCo) - a consortium involving Wattle Hill RHC Fund &amp; ROC Capital P/L - entitling CZZ's shareholders to $20.06/share (cash), a 28.2% premium to last close and an implied FY18 PER and EV/EBITDA of 19.3x and 12.5x, respectively.
A scrip alternative is also available on a 1:1 basis. Shareholders opting for the scrip alternative can also subscribe for a further 0.5 Holdco…

Australia

Capilano Honey Limited was founded in 1953. The Company's line of business includes manufacturing prepared foods and miscellaneous food specialties.

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Capilano Honey (CZZ AU)

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