Youfoodz Holdings Ltd. (ASX: YFZ) operates as an investment holding company. It produces and distributes ready-made meals and other convenience food products to its home delivery, retail and corporate customers. The company was founded by Lance Giles in 2012 and is headquartered in Brisbane, Australia.
The YFZ share price was one of the best performers on today’s ASX trading session. YFZ shares were caught in a downward spiral up until today, however, news of an acquisition offer from HelloFresh has resulted in the YFZ breaking its shackles and skyrocketing.
This morning, YFZ announced has entered into a Scheme Implementation Deed with HelloFresh SE (HelloFresh), under which it is proposed HelloFresh will acquire 100% of the share capital in Youfoodz for A$0.93 per share in cash by way of a scheme of arrangement. Cash consideration of A$0.93per share represents a significant premium of 82% to the last closing price of A$0.51 per share and a 109% premium to the one-month volume weighted average price (VWAP) of $0.44.
The YFZ board is known to have unanimously recommended the shareholders to vote in favour of the acquisition scheme. The acquisition brings a lot of synergies to HelloFresh and Youfoodz. Youfoodz alone is expected to generate an additional $150 million to HelloFresh’s revenues.
The markets reacted extremely positively to the news of the acquisition. YFZ shares closed at $0.905 a share, surging 77%. The offer price of $0.93 a share suggests that YFZ shares still have a little bit of running room left.
Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2021! Click here now!