Bega float may close earlier than expected
Bega Cheese’s initial public offering (IPO) may close earlier than expected because of heavy interest, says Kidder Williams, corporate advisor to the Bega float, according to Australian Food News contacts.
The IPO, which opened on 16 July, was scheduled to close on 16 August 2011.
Australian Food News reported on 10 July that Bega plans to raise A$35 million through selling a 15% stake in the company. The offering involved the issue of 18.3 million shares at A$2.00 per share, valuing the company at $254 million.
Bega intends to use the proceeds from the IPO to reduce existing financing facilities as well as likely acquiring the 30% of the Tatura Milk Industries (TMI) business that Bega does not already own.
Bega acquired a 70% controlling interest in TMI during 2007. The two sides have signed an agreement to be executed following the IPO and Bega will allow TMI shareholders to convert their shares to its stock. However, certain details of the merger, including the number of shares to be issued in exchange for TMI shares, are yet to be finalised.