By Robb M. Stewart
MELBOURNE, Australia--China Mengniu Dairy, one of China's leading dairy-products manufacturers, has struck a deal to buy Bellamy's Australia for about 1.50 billion Australian dollars (US$1.03 billion).
Bellamy's board of directors said Monday they have unanimously backed an offer from Mengniu of A$12.65 a share in cash. Bellamy's shareholders also will receive a A$0.60 special dividend paid by the Australian company before the takeover is implemented.
The offer marks a 59% premium to the last closing price for Bellamy's.
"This transaction can further deliver on our founder's original vision of a truly iconic Australian brand," Bellamy's Chief Executive Andrew Cohen said.
Founded in Tasmania and listed on the Australian Securities Exchange in 2014, Bellamy's produces, supplies and markets a range of organic food and infant formula for babies and toddlers. Its products are distributed in Australia, Vietnam, Singapore, Malaysia, New Zealand and China.
Mengniu manufacture and distributes dairy products in China, and has manufacturing sites in New Zealand and in Indonesia.
The offer remains subject to a number of conditions, including approval by Bellamy's shareholders and clearance by the Australian Foreign Investment Review Board.
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