This article is from the Australian Property Journal archive
RETAIL Food Group has withdrawn its $94.7 million takeover bid for Oaks Hotels & Resorts.
The move comes after the Australian Securities and Investments Commission gave the green light for Minor’s subsidiary Delicious Food Holding to buy 34.4% of shares in Oaks held by PricewaterhouseCoopers as receivers and managers, which Oaks’ board of directors had hoped would not be granted.
As a result, Minor now holds at 54.3% stake in Oaks, giving it the power to block any competitive bids.
RFG said yesterday that after considering its position it has decided not to proceed.
The acquisition would have diversified RFG’s business, which is primarily in retail food franchising owning such brands as Donut King, Brumby’s Bakeries, Michel’s Patisserie, bb’s café and Esquires Coffee Houses.
But RFG’s shareholders did not welcome that change of strategy, the company’s share price fell from $2.85 to $2.39 after it made the takeover bid for Oaks.
And when news emerged late last week that Minor had been successful in acquiring a 34.4% stake in Oaks, RFG’s share price rose 6.3% or 15 cents to $2.54.
Yesterday RFG sought to assure shareholders, saying that it remains principally focused “in the acquisition and proliferation of retail assets and franchising and in this respect the company continues to investigate a number of promising retail food franchising opportunities,”
Australian Property Journal
